EAIF adopts IFC Master Cooperation Agreement to boost growth, jobs in Sub-Saharan Africa and MENA
The Emerging Africa Infrastructure Fund (EAIF) became the 34th development finance institution to join IFC’s Master Cooperation Agreement, making it easier for the two institutions to collaborate on expanding private sector investments in African and Middle East infrastructure and boost jobs and economic growth. EAIF, which is a public private partnership, is the first third party fund to sign up to the IFC’s Master Cooperation Agreement.
IFC, a member of the World Bank Group, plays a key role in mobilizing private capital to accelerate development in emerging markets. Its Master Cooperation Agreement standardizes steps that lenders take when co-financing projects with IFC. This streamlined approach saves time and money for borrowers, private companies in emerging markets and lenders. Lenders who adopt the agreement benefit from IFC’s $16-billion loan-syndication platform, global presence, and expertise in deal-structuring expertise and due diligence.
Established by Private Infrastructure Development Group (PIDG) in 2002, EAIF raises its capital from governments, private sector banks and financial institutions, and development finance institutions. The Fund’s objective is to mobilize capital from public and private sources to lend to businesses creating, improving or expanding infrastructure in Sub-Saharan Africa.
Last year, EAIF signed 8 projects in 4 sectors in 7 African countries. In 2020 its loan commitments are expected to exceed US$1 billion. EAIF is managed by the Africa-headquartered asset managers, Ninety One (formerly Investec Asset Management).
Martijn Proos, a director at Ninety One, said: “The MCA is an exciting development for the Emerging Africa Infrastructure Fund. It helps widen and deepen our new business pipeline. It will accelerate the time it takes to get good projects financed and deliver efficiencies in human resources and legal and administrative costs.”
John Gandolfo, IFC Vice President and Treasurer, said: “This agreement with the Emerging Africa Infrastructure Fund means the addition of another key partner to our network of MCA signatories. It also complements IFC’s longstanding focus on helping African clients fill Africa’s infrastructure gap.”
IFC created the MCA in 2009, in response to calls by the Group of 20 nations for official finance institutions to collaborate more closely to help meet shortfalls in private sector financing during the global financial crisis. Since then, IFC has syndicated more than $26 billion in parallel loans for clients—nearly half of which has come from MCA signatories.