By Irene Gaitirira
Published August 11, 2017
A US$1 Billion fund to support infrastructure and spur sustainable economic growth in Africa has been created.
A Danish initiative bringing together four partners, the new fund with a duration of 10 years and initial target of 10 to 15 investments that has received commitments of US$550 Million from anchor investors says it hopes to deliver an attractive return to its investors.
Following first commitments, the fund will be open for additional institutional investors for the next 12 months. The ambition is to raise US$1 Billion in commitments.
The fund will be managed by AP Moller Capital and consists of a team four partners all of who are said to have ‘extensive industrial and investment experience combined with a substantial network in Africa’.
Torben Möger Pedersen, CEO of PensionDanmark and Chresten Dengsøe, CEO at Lægernes Pension say they both view the Africa Infrastructure Fund as a as a unique opportunity to invest in a region with high economic growth and attractive investment opportunities.
“The fund is a good example of how private capital can be mobilized on large scale to implement the UN’s Sustainable Development Goals,” Pedersen says.
While the managers are Kim Fejfer, Lars Reno Jakobsen, Jens Thomassen and Joe Nicklaus Nielsen, the initial four partners of the fund are AP Moller Holding, PKA, PensionDanmark and Lægernes Pension.
While Kim Fejfer, Managing Partner and CEO of AP Moller Capital says that they will through the new fund “build and operate infrastructure business in Africa to support sustainable development and improvements in living standards across the continent,”
Robert Mærsk Uggla, CEO of AP Moller Holding says the company they have created will enable “Africa, with a working-age population likely to reach more than one billion people in the next decades, has a pressing requirement for more investments in infrastructure” in meeting its development goals.
“With this new fund,” says Peter Damgaard Jensen, CEO at PKA, “we will be making infrastructure investments in Africa and get the opportunity to provide a good return to the pension savers and at the same time make a positive difference in line with the UN Sustainable Development Goals.”