EM-focused A.P. Moller Capital's $1bn fund gets IFC support

AFRICAN STOCKS AND FINANCEDecember 19, 2023 at 9:30 PM UTC

International Finance Corporation is injecting $50 million in equity to support A.P. Moller Capital's $1 billion Emerging Markets Infrastructure Fund II ("EMIF II"). This investment is part of a collaboration with a global consortium of partners.

EMIF II is set to allocate around 50% of its funds to each of Africa and South and Southeast Asia. The fund's focus will be divided, with around 60% dedicated to onshore transport infrastructure, covering areas such as ports and storage, roads and rail, warehouses, and distribution. The remaining share will be directed toward renewable energy projects and distribution infrastructure.

Kim Fejfer, Managing Partner and CEO at A.P. Moller Capital expressed enthusiasm for the partnership, emphasizing the alignment with their commitment to "doing well while doing good." The goal is to increase sustainable investments in green energy and transport in high-growth markets across Asia and Africa, with a focus on building businesses that contribute to economic and social development.

Key Takeaways

Emerging economies have historically faced chronic underinvestment in their transportation networks, impeding their socio-economic progress. Despite hosting more than half of the global population in 2022, Africa, Southeast Asia, and South Asia collectively account for only 16 percent of the world's total primary energy consumption. Africa especially represents a substantial infrastructure investment opportunity, with a current annual investment gap exceeding $150 billion. Despite being home to some of the world's fastest-growing economies, boasting a combined GDP of $2.3 trillion and a population of 1.3 billion people, the continent grapples with significant challenges in infrastructure. Only 60 percent of the population has access to basic electricity, highlighting the pressing need for substantial investment to address these infrastructural gaps.

AP Moller Capital

IFC

Finance

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Infrastructure Financing

Kim Fejfer

Africa

Clean Energy