Infrastructure Fund Targets Overlooked Asia in $300 Million Push
An infrastructure fund backed by European governments aims to invest at least $300 million in climate-focused projects in developing nations in Asia that typically struggle to access funding.
The Emerging Africa & Asia Infrastructure Fund plans to back small and medium-sized enterprises in locations including Sri Lanka, Cambodia, Laos and Bangladesh, said Esther Chan, Cape Town-based investment director at Ninety One Plc, which runs the fund. Chan aims to deploy a total of $1 billion across Asia and Africa over the next four years.
“Our mandate for developmental impact is very, very important – making sure that we are in spaces where other lenders are unwilling to go,” she said. EMIF is part of the Private Infrastructure Development Group, funded by the World Bank and seven donor nations, including the UK, Germany and Switzerland.
Small and developing countries have traditionally encountered major difficulties in accessing sufficient climate finance, a recurring pain point in global negotiations, and now have additional challenges as some large economies trim development budgets or shift priorities to defense spending. The Asia Pacific region alone faces a shortfall of at least $800 billion, the International Monetary Fund calculated last year.
MIF recently made its first Asia investments – into a sustainable aviation fuel facility in Pakistan and rooftop solar developments in Vietnam – after expanding its mandate in October. The fund has committed $1.7 billion since 2002 and co-invested in more than 100 projects across 22 countries, raising debt capital from entities including Allianz SE and Standard Chartered Bank.
“In the current climate, EMIF will continue to leverage its convening power and position in the market to bring more private investors into backing African and Asian infrastructure projects,” Chan said. In Asia, the fund aims to invest in sectors including renewable energy, electric mobility and battery storage.