The A.P Moller Holdings together with Pension Denmark, PKA and Laegerness Pension have taken initiative to invest in Africa’s transport and energy sector by launching an infrastructure fund with Africa focus.
According to Financial News London, the group of Danish investors has committed an initial $550m to the $1bn target Africa fund in order to encourage investment in Africa’s infrastructure.
The CEO of A.P Muller Holding, Robert Maersk Uggla, in a statement following the official launch said “Africa, with a working-age population likely to reach more than one billion people in the next decades, has a pressing requirement for more investments in infrastructure. In this respect, we are delighted to have established a new promising company in our portfolio with a strong team, who hold the right capabilities and experience to manage infrastructure investments in emerging markets”.
According to World Bank, the need for infrastructure improvements in Africa is critical. Untold numbers of businesses suffer from lack of reliable power for industrial processes or because they cannot get their goods to the market, hence, the need to deliver key infrastructure services such as water, transportation, gas and electricity.
The CEO of PKA, Peter Damgaard Jensen, also said “With this new fund we will be making infrastructure investments in Africa and get the opportunity to provide a good return to the pension savers and at the same time make a positive difference in line with the UN Sustainable Development Goals”.
Supporting the statement made by the PKA COE, Pension Denmark CEO, Torben Möger Pedersen said “The fund is a good example of how private capital can be mobilized on large scale to implement the UN’s Sustainable Development Goals”.
The Africa Infrastructure Fund I, has a duration of 10 years with the initial target of 10 to 15 investments will focus on investments in infrastructure in Africa to support sustainable economic growth in the African region while delivering an attractive return to its investors.
A recent UN report revealed that Africa’s poor infrastructure is slowing its economic development. With foreign investments like Africa Infrastructure Fund, some of these gaps can be filled.