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In the bid to reduce the huge infrastructure financing gap in Sub-Saharan Africa, the African Development Bank (AfDB) said today that it has approved $100 million funding for Emerging Africa Infrastructure Fund (EAIF).

EAIF is a public private partnership. Through a $325-365 million debt raise, it intends to develop the fund’s strategy of growing its loan portfolio over the next 3 to 5 years, and become a sustainable and concrete alternative to development finance institutions and commercial banks.

Since its inception, the Fund has played a key role in the infrastructure landscape in Africa, investing in structuring and long-term infrastructure projects, to the tune of over $1.2 billion in about 70 transactions.

EAIF has been working with the AfDB since its inception. The Fund plans to reinforce investments in 49 eligible countries and fragile states with a clear focus on crucial sectors for the development of infrastructures in the power, telecommunication, transportation, manufacturing, among other sectors.

EAIF business model targets several development outcomes. These include green and sustainable economic growth, creation of 3,500 permanent jobs, and access to infrastructure while committing to invest in environmental, social and gender projects.

The AfDB said its investment in EAIF is a reflection of its strategic thrust to achieve four of its five operational priorities notably, Light Up and Power Africa, Feed Africa, Integrate Africa and Improve the quality of life for people in Africa. In addition, it said EAIF lending strategy is in line with the Bank’s Private Sector Development Strategy for developing infrastructure, supporting regional economic integration, and providing a platform for private sector development.