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Posted on December 18, 2024 | Updated at 4PM

FinDev Canada invests US$ 35 million in Pembani Remgro Infrastructure Fund II to develop sustainable infrastructure in South Africa

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Montreal (Quebec), 20 December 2024 – Canada’s bilateral Development Finance Institution, FinDev Canada, announces a US$ 35 million commitment to Pembani Remgro Infrastructure Fund II (PRIF II or the Fund), an infrastructure-focused private equity fund providing equity and quasi-equity capital to projects and companies primarily located in Sub-Saharan Africa. 

According to the United Nations, Africa’s population is expected to increase by over 60% and reach 2.5 billion by 2050. This creates an urgent need to address both current and anticipated infrastructure demands to meet the UN Sustainable Development Goals. However, the continent is confronted with a significant infrastructure financing gap, requiring billions of dollars in annual investment to support the rapidly growing population. 

FinDev Canada’s investment will enable PRIF II to deploy much-needed capital to meet the increasing demand for infrastructure. The funding will help address the need for long-term capital for sustainable infrastructure investments in power, energy transition, transport, logistics, and digital services, which are essential for regional economic development. 

A minimum of 30% of the proceeds will be invested in climate finance eligible projects, increasing support towards low carbon and climate resilient operations. Additionally, the Fund will endeavour to have a minimum of 40% of the proceeds invested in 2X aligned projects, further demonstrating PRIF II’s commitment to gender equality in employment opportunities. 

The Fund is managed by Pembani Remgro Infrastructure Managers Proprietary Limited (PRIM), a leading player for sustainable infrastructure investments supporting green, adaptable, and inclusive development. 

“This partnership reinforces FinDev Canada’s commitment to supporting sustainable development in Sub-Saharan Africa. We are proud to support PRIF II in developing innovative solutions for a climate-resilient and gender-inclusive future – and look forward to continuing to expand our impact in the region in the years to come,” declared Lori Kerr, Chief Executive Officer, FinDev Canada. 

“We are delighted to welcome FinDev Canada as one of the large investors in PRIF II. This is a relatively new investor relationship for PRIM and we look forward to working closely with the team at FinDev Canada as a long-term partner for investment in Africa,” added Herc van Wyk, Chief Executive Officer, PRIM. 

About FinDev Canada       

FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and advisory, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and Paris Agreement commitments. Find out more about FinDev Canada at www.findevcanada.ca

About PRIM 

PRIM is a South African based fund manager with a strategy to generate attractive risk-adjusted investment returns by investing equity and quasi-equity in the full spectrum of infrastructure opportunities on the African continent. Following the success of its first fund, PRIF II achieved a final close in November 2024 and it has received total commitments of USD 355 million. The key investment areas will continue to be digital infrastructure, energy transition, transportation and logistics. PRIM is a sustainable investor on the African continent, is a 2X Challenge signatory and will also increase its focus on climate change by collaborating with its investee companies to mitigate the impact on the environment over time. 

Media Contact

FinDev Canada: Media@findevcanada.ca