Infrastructural projects in Africa’s key markets continue to attract significant Private Equity Investment
By Rolex Owino
African Private Equity and Venture Capital Association (AVCA) is hosting a delegation of US based investors, mainly drawn from equity investors, who will be touring Kenya to explore on infrastructural investments.
AVCA announced its support for the Mobilising Institutional Investors to Develop Africa’s Infrastructure (MiDA) programme, as part of its commitment to catalyse the flow of private investment into Africa.
MiDA is an investment programme that was launched in 2016, by the National Association of Securities Professionals (NASP) and the United States Agency for International Development (USAID), which exposes US institutional investors to the opportunities in Africa’s infrastructure sector. The total assets under management of NASP members – totals to close to US$3trn, which is equivalent to almost 40% of US’s pension funds.
As part of its activities, MiDA is organising a delegation to Africa with US institutional investors from the Alameda County Employees’ Retirement Association, Board of Education Retirement System of the City of New York, Casey Family Program, Chicago Teachers’ Pension Fund, City of Philadelphia, City and County of San Francisco Employees Retirement System, Police and Fire Retirement Systems City of Detroit, Texas Teachers Retirement System, and The University of Chicago Endowment.
Senior executives from about 30 US asset owners comprising pensions, insurance, endowments and foundations – with an estimated $1.5 trillion in assets under management, asset managers who invest close to $5 trillion in assets, and consultants who advise approximately $1.2 trillion in assets – have hitherto diversified their investment portfolios to varied investment projects in Africa.
Institutional investors from the continent including South Africa’s Public Investment Corporation, Uganda’s National Social Security Fund, Tanzania’s Public Service Pension Fund, sovereign wealth funds from Nigeria, Angola, Kenya, Senegal, Uganda, and Rwanda – have worked with MiDa. These asset owners represent a significant share of Africa’s estimated $1 trillion in institutional investors assets.
The delegation’s trip will begin in, Nairobi, Kenya’s capital, where the group will attend the 16thAnnual AVCA Conference. MiDA’s Managing Partner, Aymeric Saha, will take part in a panel discussion on capturing the opportunities of Africa’s infrastructure gap, alongside Michael Gera, Managing Partner & Co-Founder, Energy Access Ventures and Jurie Swart, Chief Executive Officer, African Infrastructure Investment Managers.
Michelle Kathryn Essomé, Chief Executive Officer, AVCA noted that, “AVCA plays a significant role in educating and connecting international investors on Africa’s diverse investment opportunities. We are proud to support MiDA, and hope that their trip will galvanise further commitments from US institutional investors in the near future.”
Aymeric Saha, Managing Director, MiDA added that, “MiDA appreciates AVCA’s support and hopes this trip will create and deepen relationships between US investors and their African counterparts. By working in a collaborative manner, we can play our part in overcoming Africa’s infrastructure deficit.”
In Kenya, MiDA is preparing domestic fund managers, banks and pension fund institutions to co-invest in infrastructure projects through capacity building and structuring of appropriate capital market vehicles – that will attract both local and foreign investors.
Source: ASV & The Exchange.