AfDB Approves €15 Million Private Sector Equity Investment in Argan Infrastructure Fund
Tunis, 17 February 2010 - The Board of Directors of the African Development Bank (AfDB) Group on Wednesday, 17 February 2010 in Tunis approved a €15-million equity investment in Argan Infrastructure Fund (ARIF), a closed-end private equity with a term of 12 years.
ARIF plans to commit approximately 40% of its interventions to Morocco, 30% to other North African countries and 30% to Sub-Saharan Africa, West Africa in particular. The Fund’s target areas are energy, transport and logistics, water and electricity distribution, environmental services, telecommunications as well as other infrastructure-related sectors.
The fund will invest in greenfield and brownfield projects jointly with corporate investments, including privatization transactions that will contribute to infrastructure development thereby providing the essential building blocks for an improved investment climate.
Infrastructure development is a priority for the Bank and the Private Sector Operations Strategy, which emphasizes the provision of equity capital to catalyze resources necessary for developing projects.
The Fund’s investment will facilitate growth and expansion in greenfield and brownfield projects, thus developing companies in the private sector, creating jobs, increasing tax revenues and contributing to sustainable development. All these outcomes are in line with the Bank’s infrastructure orientation and the Private Sector Development Strategy.
The Bank’s participation along with other Development Financial Institutions will attract additional private sector investors.
In addition, the Bank’s general efforts to improve the enabling environment for infrastructure development will benefit the Fund’s investments. Finally, in specific instances, the Bank may consider providing additional financing for the Fund’s portfolio projects to facilitate their development.