British International Investment

African Infrastructure Investment Fund III

AfricaBeninBurkina FasoCameroonCote d'IvoireGhanaMaliMoroccoNigeriaSouth AfricaTanzaniaWest AfricaZambiaAfricaCommunications & IT servicesFinancial servicesInfrastructureOther

The African Infrastructure Investment Fund III (AIIF III) is the firm’s second sub-Saharan Africa focused fund. AIIF III will target core infrastructure investments in the power, transport and midstream energy sectors across sub-Saharan Africa.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

In 2017, CDC invested $45 million into AIIF III alongside German DFI, DEG. We made a follow-on commitment in 2018, and another commitment in 2020. Our investment will support the development of vital infrastructure in Africa.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact
  • Improve standards of living for end consumers through the provision of more and better-quality infrastructure services (SDG 7.1, 7.2, 9C).
  • Economic opportunities created through businesses and employment growth (SDG 8.5).

How?

How?

Economic enabler: Increase the supply of reliable and affordable energy, cooking fuel, ICT infrastructure, increasing productivity, and so lead to economic growth, job creation and improved quality of life.

Who?

Stakeholder Geography Characteristics
Consumers

Top up: Pan-Africa, approximately 45 per cent Morocco (category ‘D’ country), 33 per cent Ghana (category ‘C’), 19 per cent South Africa (category ‘D’), 4 per cent Mali (category ‘A’).

AIIF III (incl. top up): Pan-Africa, approximately 34 per cent Ghana (category ‘C’ country ), 21 per cent Nigeria (category ‘B’), 16 per cent Morocco (category ‘D’), 7 per cent South Africa (category ‘D’), 7 per cent Mali (category ‘A’), 4 per cent Tanzania (category ‘B’) 4 per cent DRC (category ‘A’), 3 per cent Kenya (category ‘C’), 3 per cent Rwanda (category ‘C’), 1 per cent Congo (category ‘A’).

Urban/peri-urban households

Employees

Top up: Pan-Africa, approximately 45 per cent Morocco (category ‘D’ country), 33 per cent Ghana (category ‘C’), 19 per cent South Africa (category ‘D’), 4 per cent Mali (category ‘A’).

AIIF III (incl. top up): Pan-Africa, approximately 34 per cent Ghana (category ‘C’ country ), 21 per cent Nigeria (category ‘B’), 16 per cent Morocco (category ‘D’), 7 per cent South Africa (category ‘D’), 7 per cent Mali (category ‘A’), 4 per cent Tanzania (category ‘B’) 4 per cent DRC (category ‘A’), 3 per cent Kenya (category ‘C’), 3 per cent Rwanda (category ‘C’), 1 per cent Congo (category ‘A’).

Unknown

How much?

Scale Depth/Duration
  • Consumers: AIIF III is expected to support the provision of infrastructure goods and services to over 27 million Africans (of which 7 million will be from the top up).
  • Employees: The top up will primarily support improvements that contribute to improved quality of life. Based on the existing portfolio, AIIF III is expected to support 244,000 forward jobs in the economy.
  • Consumers: Those suffering from unreliable electricity, cooking fuel, internet will benefit from quality of life improvements, but these are expected to be greater for households that consume most of the product/service.
  • Employees: The impact on economic opportunities is expected to be deeper in countries where there are higher poverty and unemployment levels.

Contribution/additionality

Contribution/additionality
  • Financial additionality: Enable AIIF III to reach its minimum target size and make commitments to up to four additional infrastructure projects.
  • Value additionality: Strengthen environmental, social and governance systems and provide guidance on Paris Agreement alignment methodology

Grid score

Grid Score

To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score.

2.4

Risk

Alignment Risk
  • The top up is in line with CDC's new Climate Change Policy and the Government's policy on fossil fuel investment, and the fund manager has agreed to follow CDC's gas guidance tool in the event that it considers gas for power investments.
Efficiency Risk
  • Whilst secondaries will feature as part of the top-up investment, understanding how different infra asset classes lead to impact outcomes is important. We expect the pipeline investees to reach more consumers through incremental increases in volumes or new connections.
Unexpected Impact Risk
  • Our assessment against our Climate Change Policy indicates that subsequent investees in AIF III target sectors could create material greenhouse gas emissions. While we have recognised this, these sectors are also important from a development perspective and there are currently no viable cleaner alternatives for transport, cooking and ICT.

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

We worked closely with the fund manager to develop and implement an ESMS that has the capacity to manage the higher level of environmental and social risk associated with this sector.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    March 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D1839
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    Africa
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Communications & IT services, Financial services, Infrastructure, Other

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Fund
    Start date :
    November 2020
    Amount :
    $15.63m
    Currency of investment :
    USD
    Fund Manager:
    African Infrastructure Investment Managers
    Domicile

    The company or investment fund’s place of incorporation.

    :
    South Africa

Related investments made by BII into this fund:

Investment name Commitment Region Sector Start date Status
Investment 01 $45m Africa Communications & IT services, Financial services, Infrastructure, Other May 2017 Active
Investment 02 $5m AfricaAfrica Communications & IT services, Financial services, Infrastructure, Other December 2018 Active

Investments made by this fund into companies:

For further information about these companies, visit https://aiimafrica.com/

Investment name Country Region Sector Start date Status
AIIM Hydroneo Ghana, Mali, Morocco, South Africa North Africa, Southern Africa, West Africa Infrastructure June 2017 Active
Albatros Energy Mali West Africa Infrastructure June 2017 Active
Amandi Energy Ghana West Africa Infrastructure December 2017 Active
Beyond Energy Investments Ltd Africa Africa Financial services November 2018 Active
Central African Corridor Company (CACC) Zambia Southern Africa Infrastructure May 2019 Active
DSM Corridor Group Tanzania East Africa Infrastructure June 2017 Active
Eastcastle Infrastructure Holdings Ltd Cote d'Ivoire, Democratic Republic of Congo, Nigeria Central Africa, West Africa Communications & IT services July 2021 Active
Ecow Gas Africa Africa Infrastructure December 2021 Active
Maria Gleta Benin West Africa Infrastructure February 2019 Active
Metrofibre Networx South Africa Southern Africa Communications & IT services January 2021 Active
Onix Accra 1 Ghana West Africa Communications & IT services February 2021 Active
Petroleum Products Pipeline SA (3PL) Cameroon Central Africa Infrastructure March 2018 Active
Proton Energy Nigeria West Africa Infrastructure June 2017 Active
Société d’Exploitation et de Gestion Aéroportuaire (SEGAP) West Africa Africa Infrastructure June 2018 Active
Sodigaz Group Burkina Faso West Africa Other August 2021 Active
Starsight Power Utility Limited Nigeria West Africa Infrastructure December 2017 Active
Tema LNG Terminal Company Ghana West Africa Infrastructure February 2020 Active
Uquo Integrated Gas Business (Accugas) Nigeria West Africa Infrastructure March 2018 Active
Volta (ETIX) Ghana West Africa Other October 2022 Active
Zina Solaire Burkina Faso West Africa Infrastructure June 2017 Exited

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