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20 June 2017

Emerging Africa Infrastructure Fund announces first project in Mali

90MW power station to increase Mali’s effective base load electricity by 30%

The private sector Malian power plant operator, Albatros Energie Mali (AEM), is to build a 90MW HFO-fueled power station in the Kayes region of the country, adding 30% to Mali’s effective base load electricity capacity. The €123.1 million project has the support of a €5.8 million 15-year term conventional loan and €3.9 million Sha’ria financing facility with a 14-year term, both from the Emerging Africa Infrastructure Fund. It is the Fund’s first project in Mali.

Most of Mali’s locally generated electricity comes from hydro power stations, with a growing proportion supplied by conventional thermal fuels. In periods of drought or low rainfall, hydro becomes less reliable, plus Mali has a limited number of locations suitable for hydro stations. Given the low global oil price, which looks likely to continue, the AEM plant will be beaten on production and supply price only by hydro.

The new plant will also benefit the Mali economy by reducing its power import bill and cutting the need for renting mobile generating capacity. Power from the AEM plant will be supplied to Mali’s national grid and will initially improve reliability of supply to major cities and to low and medium voltage users. As large industries become connected to the grid, the plant will contribute to their power needs.

Construction is expected to take around 16 months. 183 local people are to be recruited to a total construction workforce of 191 people. When operational, the plant will employ 53 staff, 50 being locally engaged.

Mali is ranked among the 25 poorest countries in the world. In 2015, The African Development Bank reported that Mali’s electrification rates remain very low, at c55% in urban areas and c15% in rural towns and villages.

“Experience worldwide shows that creating a reliable electricity generating sector is the single most important element in helping fragile states fight poverty, build economic confidence and unlock human and commercial potential,”” says EAIF Executive Director, Emilio Cattaneo.

Mali becomes the 21st sub-Saharan country in which EAIF has made loans to private sector projects, since the Fund was set up in 2002.

“EAIF was established with the primary objective of stimulating economic development as a means of reducing poverty. Alleviating poverty is essential to a stable and progressive economic development, “added Mr Cattaneo.

EAIF is member of the Private Infrastructure Development Group (PIDG). Another PIDG business, GuarantCo is providing a 14 ½ year guarantee facility of €3.8 million to AEM’s Mali development. A third PIDG facility, the Technical Assistant Facility (TAF) assisted AEM with US$500,000 of funding towards project development costs.

Seven governments (and The World Bank) currently contribute funds to PIDG. In the case of EAIF, support comes from the governments of the UK, The Netherlands, Sweden and Switzerland, as well as private sector banks, the German development finance institution, KfW and its Dutch equivalent, FMO. GuarantCo is supported by the governments of Australia, the UK, Sweden, Switzerland and The Netherlands, through PIDG and the FMO, the Dutch development finance organisation.

EAIF is managed by Investec Asset Management (IAM), one of the largest third party investors in private equity, credit, public equity and sovereign debt across the African continent.

The Head of EAIF at Investec Asset Management, Nazmeera Moola, says,

“The financing of this project in Mali was structured to maximize access to both Western and Islamic financing. For the first time EAIF has participated in a project that includes an element of Sha’ria finance. This experience deepens and widens our existing strengths as a high-quality lender of choice to African infrastructure developers.”

ENDS

The Emerging Africa Infrastructure Fund is funded by:

For further information, please contact:

EAIF

Martin Roche +44(0)771 574 9621

wmartinroche@btinternet.com


Investec Asset Management

Vian Sharif +44 207 597 1834

vian.sharif@investecmail.com

Kotie Basson +27 21 416 1812

kotie.basson@investecmail.com


PIDG

Rebecca Goding +44 (0)20 3058 3182

rebecca.goding@pidg.org

Notes to Editors

The Emerging Africa Infrastructure Fund

The Emerging Africa Infrastructure Fund provides a variety of debt products to infrastructure projects promoted mainly by private sector businesses in sub-Saharan Africa. Established and substantially funded by the governments of The Netherlands, Switzerland, Sweden and the United Kingdom, and with debt provided by the German development finance institution, KfW and its Dutch equivalent, FMO, the Fund works with private sector businesses, African and European banks and other development funds and agencies. It helps create the infrastructure framework that is essential to sustained economic stability, business confidence, job creation and poverty reduction. It has to date supported nearly 60 infrastructure projects across eight sectors in 20 sub-Saharan African countries.

www.eaif.com

The Private Infrastructure Development Group

The Private Infrastructure Development Group (PIDG) encourages and mobilises private investment in infrastructure in the frontier markets of sub-Saharan Africa, south and south-east Asia, to help promote economic development and combat poverty. Since 2002, PIDG has supported 133 infrastructure projects to financial close and provided 265 million people with access to new or improved infrastructure. PIDG is funded by donors from seven countries (UK, Switzerland, Australia, Norway, Sweden, Netherlands, Germany) and the World Bank Group.

www.pidg.org

About Investec Asset Management

Investec Asset Management is an independently managed subsidiary of Investec Group. Investec Asset Management is a specialist investment manager, providing a premier range of products to institutional and individual investors. Established in 1991, the firm has been built from start-up into an international business managing more than $119bn* on behalf of third party clients. The business has grown largely organically from domestic roots in Southern Africa to a position where we proudly serve a growing international client base from the Americas, the UK and Continental Europe, Asia, the Middle East, Australia and Africa. The firm seeks to create a profitable partnership between clients, shareholders and employees, and to exceed expectations for both client service and performance.

www.investecassetmanagement.com

*As at end March 2017

The information contained in this press release is intended primarily for journalists and should not be relied upon by private investors or any other persons to make financial decisions. All of the views expressed about the markets, securities or companies in this press comment accurately reflect the personal views of the individual fund manager (or team) named. While opinions stated are honestly held, they are not guarantees and should not be relied on. Investec Asset Management in the normal course of its activities as an international investment manager may already hold or intend to purchase or sell the stocks mentioned on behalf of its clients. The information or opinions provided should not be taken as specific advice on the merits of any investment decision. Telephone calls may be recorded for training and quality assurance purposes. Investec Asset Management is an authorised financial services provider.

July 2017

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• EAIF and Dutch development bank FMO each lending 50%
• EAIF Mandated Lead Arranger
• Refinancing also facilitates building new generating capacity
• Refinancing also facilitates building new generating capacity

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Life-changing infrastructure helps 31m people in Africa and Asia

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June 2017

EAIF manager wins Credit Deal of the Year award for IHS Nigeria US$800 million bond issue

At an awards ceremony at London’s Savoy Hotel on 1st June, the Emerging Africa Infrastructure Fund (EAIF), shared in the congratulations when its manager, Investec Asset Management, won the Credit Deal of the Year award from Private Equity Africa. The award marks the successful US$800 million bond issue by IHS, one of Nigeria’s leading telecommunications businesses. EAIF invested US$50 million in the bond.

Media Enquiries

Please address all media related enquiries to:


EAIF Media Contact
media@eaif.com

Investec Media Contact
Vian Sharif
UK, Europe, America and Asia
Woolgate Exchange, 25 Basinghall Street, London, EC2V 5HA
Tel: +44 (0)20 7597 1834
Email: Vian.Sharif@investecmail.com

Kotie Basson
South Africa, Africa and Middle East
36 Hans Strijdom Avenue Foreshore Cape Town 8001
Tel: +27 (0)21 416 1812
Email: Kotie.Basson@investecmail.com