In Africa, the development of digital infrastructures is a key prerequisite for an effective digital transformation, which is accelerated since 2020. The additional financing committed by the two partners will help the continent develop the needed infrastructure. 

British International Investment (BII) and FMO announced Tuesday (July 27), a joint US116 million commitment to the fourth Africa Infrastructure Fund (AIIF4). As the lead investor, BII committed US$76 million against US$40 million by the FMO. 

The fund, managed by African Infrastructure Investment Managers (AIIM), seeks to raise a total of US$500 million. Part of the fund will finance digital infrastructure (including mobile telecom towers, data centers, and fiber networks) in Africa.

“For over a decade, BII has proudly been an active partner to AIIM, an institutional fund manager with long-term industry expertise and on-ground knowledge of the Africa infrastructure space. We are pleased [...] to mobilize further capital to help meet AIIF4’s target size, playing a role in meeting Africa’s infrastructure needs. AIIF4 aligns with BII’s core infrastructure strategy, and we are confident that our capital will help modernize cities and services and accelerate social and economic prosperity for people and communities across the continent,” said Ryan Wagner, BII’s Head of Infrastructure and Climate Funds.

In 2020, the coronavirus pandemic forced African countries to accelerate their digital transformation. The need for high-speed connectivity and digital services is increasing. It is therefore essential to invest in the development of internet networks as well as data storage and security infrastructures. 

The digital infrastructure that AIIF4 will help develop "will support inclusive development, improve standards of living for consumers and accelerate sustainable economic growth within many countries across the continent," according to BII.

Samira Njoya