Building Africa’s Future with EIB’s $80m Commitment to Resilient Infrastructure
The European Investment Bank (EIB) has made its most significant financial commitment to Africa, pledging $80 million in equity to the Pembani Remgro Infrastructure Fund II (PRIF II).
Announced at the Africa Investment Forum, this landmark investment aims to transform sub-Saharan Africa’s infrastructure landscape by funding projects focused on renewable energy, digital connectivity, and transportation. By addressing the continent’s pressing infrastructure needs, this initiative aligns with the EIB’s Climate Bank Roadmap and the EU Global Gateway strategy.
EIB Vice-President Ambroise Fayolle remarked: “This is the EIB’s largest commitment to an African fund. It reflects our dedication to fostering sustainable development across the continent. Our investment in PRIF II will address clean energy, digital access, transport connectivity, and job creation, helping build a sustainable future.”
Bridging Africa’s Infrastructure Gap
Africa faces a daunting $100 billion annual infrastructure financing gap. Despite its immense renewable energy potential, the continent receives a mere 2% of global clean energy investment. PRIF II, with support from the EIB, is designed to close this gap by prioritising climate action and sustainable development.
The fund’s initial focus will be on expanding digital connectivity, starting with an Africa-wide data centre platform. This bold initiative aims to address the digital divide, where an estimated 900 million Africans still lack internet access. Improved digital infrastructure will not only enhance connectivity but also unlock new opportunities for businesses and individuals alike.
Advancing Climate Action and Sustainability
PRIF II’s climate action initiatives go beyond digital infrastructure. The fund will invest in renewable energy projects to harness Africa’s untapped potential, including solar, wind, and hydropower. By doing so, it seeks to reduce reliance on fossil fuels, mitigate environmental degradation, and support the global transition to clean energy.
Transportation infrastructure is another critical area of focus. Improved transport connectivity will facilitate trade, enable better access to essential services, and support local economies. These projects will be developed in adherence to global environmental and social responsibility standards, ensuring that sustainability remains a cornerstone of every initiative.
Creating Jobs and Promoting Inclusive Growth
The EIB’s $80 million investment is expected to generate 1,400 full-time jobs, with a strong emphasis on promoting inclusive growth. PRIF II aims to qualify for the 2X Challenge, an initiative dedicated to advancing gender equality and fostering opportunities for women and young entrepreneurs. This commitment underscores the fund’s role in addressing societal disparities while driving economic progress.
Herc van Wyk, CEO of PRIF II, expressed his enthusiasm, stating: “We are delighted to welcome the EIB as a major investment partner in PRIF II and look forward to a long-term partnership to address Africa’s infrastructure needs.”
Leveraging Additional Funding
The EIB’s contribution will enable PRIF II to attract additional private and public funding, helping the fund exceed its target size of $355 million. This will amplify its ability to deliver impactful projects across sub-Saharan Africa. By mobilising resources from diverse stakeholders, PRIF II is poised to scale its efforts and maximise its reach.
Such collaborative efforts align seamlessly with the EU Global Gateway strategy, which aims to mobilise €300 billion for global infrastructure development by 2027, with half of that amount dedicated to Africa. The strategy underscores Europe’s commitment to fostering resilient and sustainable infrastructure across the globe.
A Partner in Progress
EIB Global, the specialised arm of the European Investment Bank Group, plays a pivotal role in this transformative initiative. By fostering international partnerships and mobilising development finance, EIB Global supports projects that align with the EU’s broader policy objectives. Its contribution to the Global Gateway strategy includes a commitment to supporting €100 billion in investment by 2027, accounting for one-third of the initiative’s overall target.
Through its offices worldwide, EIB Global brings the Group closer to local communities, businesses, and institutions, ensuring that its investments create tangible benefits on the ground. This hands-on approach enhances the impact of initiatives like PRIF II and strengthens partnerships with other development finance institutions and civil society organisations.
A Catalyst for Transformation
The EIB’s $80 million investment in PRIF II marks a turning point for infrastructure development in Africa. By addressing critical gaps in digital connectivity, renewable energy, and transportation, this initiative paves the way for a brighter, more sustainable future. The fund’s focus on inclusive growth, job creation, and gender equality further reinforces its potential to drive meaningful change.
With the support of the EIB, PRIF II is well-positioned to deliver impactful projects that not only transform infrastructure but also empower communities and promote economic resilience. This partnership exemplifies the power of collaboration in addressing global challenges and building a sustainable world.
