Start of main content

Press release
December 18, 2024
solar panel layout

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

Press Release

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.

Summary of Anticipated Development Impacts

MARKET DEVELOPMENT 

  • Expanding sustainable infrastructure access: PRIF II will target both greenfield and brownfield projects focused on high‑growth, productivity‑enabling subsectors within transport and logistics, energy, and digital infrastructure (i.e., data centres, fibre‑optic connectivity, and digital services) sectors. These sustainable infrastructure investments are expected to improve access to digital, transport, logistics, and power generation services, particularly benefiting the Least Developed Countries.
  • Supporting employment: PRIF II is expected to support formal employment opportunities in infrastructure across Africa through its portfolio companies.

MARKET DEVELOPMENT

Expanding sustainable infrastructure access

PRIF II will target both greenfield and brownfield projects focused on high‑growth, productivity‑enabling subsectors within transport and logistics, energy, and digital infrastructure sectors

CLIMATE AND NATURE ACTION 

  • Building local resiliency to climate change: the African continent is particularly vulnerable to climate change; yet it continues to contend with a staggering gap in climate financing. According to the Climate Policy Initiative, Africa needs approximately USD 2.8 trillion to implement its Nationally Determined Contributions (NDCs) by 2030. However, current climate finance flows are insufficient, with an annual gap of USD 200–400 billion. PRIF II seeks to address this challenge by facilitating at least 30% of climate finance transactions at the portfolio level.

GENDER EQUALITY 

  • Promoting women’s participation in infrastructure finance: PRIM is dedicated to maintaining gender parity in employment at the Fund Manager level. In addition, PRIM is working to implement a gender policy with specific targets and initiatives to support women’s inclusion. As for its portfolio, the Fund Manager is expected to channel a minimum of 40% of the proceeds towards 2X‑aligned projects.

Read the Transaction Summary