The European Investment Bank (EIB) has committed $80-million in equity to the Pembani Remgro Infrastructure Fund II (PRIF II) to finance infrastructure projects in sub-Saharan Africa.

The PRIF II will fund renewable energy, digital infrastructure and transportation initiatives that support climate action, environmental sustainability and local economies and society.

Every year, Africa faces a $100-billion gap in infrastructure financing, which limits growth and access to essential services, the EIB notes.

Despite its renewable-energy potential, Africa only receives 2% of global clean energy investment. PRIF II will invest in climate action projects that support initiatives in line with the EIB’s Climate Bank Roadmap.

The fund will also support projects to improve transport connectivity and achieve equitable access to secure and affordable digital infrastructure, with the aim being to encourage sustainable development across the continent.

The fund will first invest in an Africa-wide data centre platform, expanding digital connectivity and addressing the digital divide, with 900-million people in Africa still lacking access to the Internet.

“This is the EIB’s largest commitment to an African fund. It reflects our commitment to Africa. Our $80-million equity investment in the PRIF II will help to address important issues such as clean energy, digital access, transport connectivity and job creation. Strengthening partnerships such as this one is key to building a sustainable future,” says EIB VP Ambroise Fayolle.

“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 the infrastructure needs in Africa,” adds PRIF II CEO Herc van Wyk.

The fund is expected to create 1 400 full-time jobs and will focus on projects that promote inclusive growth. The fund adheres to global environmental and social responsibility standards and aims to qualify for the 2X Challenge, advancing gender equality and creating opportunities for women and young entrepreneurs.

The EIB says its financing will enable the fund manager to leverage additional private and public funding, helping the fund exceed its target size with total commitments worth $355-million. This will further enable the fund to deliver impactful projects on the ground.

This operation underlines the importance of the EIB’s contribution to the EU Global Gateway strategy, which plans to mobilise €300-billion for global infrastructure by 2027, with half dedicated to Africa.