IFC invests Sh7bn in fund for Africa, Asia projects


IFC Regional Director for Eastern Africa Jumoke Jagun-Dokunmu. FILE PHOTO | NMG

The International Finance Corporation (IFC) has committed a Sh7.28 billion ($50 million) equity investment in a Denmark-backed fund referred to as the Emerging Markets Infrastructure Fund II.

The funding will go towards transport infrastructure projects, and supply chains to help tackle food insecurity and climate-related issues in Africa and South Asia.

The fund was launched in July 2023, by A.P. Moller Capital, a Danish fund manager, with a target size of $1 billion (Sh145.8 billion).

“The proposed project consists of an equity investment of up to Sh7.28 billion (US$50 million) in Emerging Markets Infrastructure Fund II (EMIF II) … established by A.P. Moller Capital … to invest in critical transport infrastructure and renewable energy assets,” said IFC.

“The Fund has a committed capital target cap of $1 billion and a hard cap [upper limit] of $1.5 billion. IFC’s proposed investment is for up to Sh7.28 billion (US$50 million) in EMIF II.”

EMIF II targets a 50 percent capital allocation in Africa with the remaining in South and Southeast Asia.

A.P. Moller Capital owns Thika Power, an 87 MW independent power producer running fuel generators and a steam turbine.

The global financier, part of the World Bank Group has become the biggest lender in the continent, using banks and organisations to boost their capital and expand lending including to specific areas such as climate-friendly projects and poverty alleviation projects.

Food insecurity, for instance, is a major problem in developing countries including many nations in Africa. In Southeast Asia, close to 17 percent of total food available is lost or wasted, according to a McKinsey report.

The study added that food loss happens at harvest or after, while food waste happens after it reaches the retailer or consumer, and its hidden costs are often equal to or greater than retailers’ net profit, even the best-performing ones.

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