African Infrastructure Investment Fund 4 Partnership

Expected Development Impact

Developing sustainable infrastructure: AIIF4 will deploy much needed long term risk capital to fill critical infrastructure financing gaps in Africa and meet the increasing demand for infrastructure related services by both businesses and households. AIIF4 aims to support some 12 opportunities, including on‑grid and off‑grid renewable energy platforms, roads and logistics companies, as well as digital infrastructure investments. Three of the Fund’s existing five portfolio companies support pan‑African or regional projects that cover Least Developing Countries where infrastructure financing gap is wider.
Enhancing energy reliability, connectivity, and digitalization: AIIF4 investee companies are expected to contribute to (i) enhancing energy reliability, particularly for businesses, (ii) boosting urban and rural mobility, (iii) improving access of businesses to regional and global markets through upgraded cold storage capacity, warehousing, and shipping services, as well as (iv) promoting a digital economy and unlocking opportunities to contract online services. • Supporting jobs: About 2,300 direct jobs could be supported through the construction, operation, and maintenance of the deployed infrastructure

About 2,300 direct jobs could be supported through the construction, operation, and maintenance of the deployed infrastructure.

Mainstreaming a gender lens in infrastructure: The Manager has committed to mainstreaming gender equality and women’s empowerment internally and at a portfolio level for AIIF4. This is done through integration of an intentional gender lens in the Manager’s employment practices and by aligning AIIF4’s portfolio against 2X Criteria, a standard in gender‑lens investing. Successful gender lens mainstreaming by AIIF4 has potential for demonstration effects in the infrastructure investment space in Africa

Building climate‑resilient infrastructure: Africa is among the regions most vulnerable to climate change and one where the climate finance gap remains considerable. AIIF4 commits to deploying (i) 75% of invested capital to sustainable infrastructure projects in alignment with the Paris Agreement, and (ii) 20% to Climate Finance transactions, as defined under the MDBs and IDFC Common Principles for Climate Change Mitigation and Adaptation Finance Tracking.
Reducing greenhouse gas emissions: AIIM recently adopted its Climate Change Policy (2022) which excludes investment into heavy fossil fuel assets. The Manager is implementing carbon reduction and offsetting strategies at the portfolio level by scaling up renewable energy platforms, supporting fuel management solutions in the logistics value chain, improving the environmental performance of data centers, and replacing diesel generators by solar photovoltaics (PV) at telecom tower sites.
Increasing climate adaptation: Climate change risk assessment, mitigation and adaptation are integrated into the Fund’s investment processes. The Manager is expected to commission site‑specific evaluations and incorporate adaptation components in project design, where material climate physical risks have been identified