The Kenyan renewable energy and ICT sectors are set to receive $115.4 million (KSh 13.9 billion) from the new funds committed by the United Kingdom government, Dutch enterprise development bank FMO and British International Investment (BII).
This came just after the announcement by two financiers who made a collective commitment to the African Infrastructure Investment Fund 4 (AIIF4), managed by the African Infrastructure Investment Managers (AIIM).
“AIIF4-backed projects will meaningfully boost productivity by creating jobs and stimulating economic activities, while the new and upgraded infrastructure will support inclusive development, improve standards of living for consumers and accelerate sustainable economic growth within many countries across the continent,” BII emphasized in a statement.
BII further stated that the funding is meant to help African Infrastructure Investment Fund 4 (AIIF4), reach its target fund size of Sh60.2 billion. The investment will help bridge the estimated gap of Sh12.9 trillion ($108 billion) in financing and infrastructure per year.
“The fund will see AIIM build on the successful performance of its predecessor funds by investing across three priority infrastructure sub-sectors: renewable energy such as roof solar,” digital infrastructure including mobile telecoms towers, data centers, and fiber optic networks; and mobility and logistics such as ports, roads and other supporting infrastructure,” the institution noted.
Individually, Dutch enterprise development bank FMO has committed Sh4.8 billion while British International Investment BII has committed Ksh9.1 billion. AIIFA has committed to invest a minimum of 20 percent of its capital in climate finance identified projects. AIIF4 stated that since 50 percent of the AIIM workforce are women, it is eligible to be in the 2X challenge, while also committing boost employment, entrepreneurship, consumption, and leadership opportunities for 30 percent of women in AIIF4’s group companies.