Africa Infrastructure Investment Managers (AIIM), a member of Old Mutual Alternative Investments and a private equity fund manager is investing $31m (€27m) for a minority stake in solar systems business to help expand off-grid solar electricity into parts of east and central Africa.
Efforts are being made by Africa Infrastructure Investment Managers (AIIM) to develop solar electricity into parts of central and east Africa by Africa Infrastructure Investment Managers (AIIM). AIIM is investing the amount in the operations of BBOXX in Kenya, the Democratic Republic of Congo and Rwanda for an anonymous minority stake. This will enable the installation of about two million solar systems by 2022, getting electricity to about 10 million people.
According to a co-founder of BBOXX, Mansoor Hamayun, the arrangement with AIIM shows BBOX shows the extent of the commitment of BBOXX to investment in the off-grid sector and its readiness partner with global companies in order to achieve its aim. The partnership also shows the commitment of BBOXX to enhance economic growth and development by removing the barriers.
AFRICA’S INFRASTRUCTURE GAP
Africa’s challenges with infrastructure have been an obstacle to the growth of its economy. The continent has, over the years, relied heavily on funds from the public for the building of their current infrastructures, however, this can hardly lead Africa to a significant improvement in the level of their porno infrastructure. More private investment should be allowed by Africa if it intends to bridge its infrastructural gaps. Infrastructure, in turn, is a giant step into the development of any country.
A few years ago, the African Development Bank declared the sum of $90 billion as the sum needed every year for the covering of the infrastructural deficit in Africa. Recently, the figures were updated, revealing the need for $170 billion annually. Sadly, only about $45 billion is being spent a year.
Both hard infrastructures (including road networks, electricity, and transport) and Soft infrastructures (including education and logistics) are needed for the smooth running and progress of every country.
According to Celeste Fauconnier, RMB’s Africa Analyst, the private sector has an important role to play in infrastructural development in Africa. It is also important to gear up Public-Private Partnership (PPP) programs, as in the past years, far too many revenues have been spent without catching up with the deficits in infrastructure. The increment of private sector investment is, therefore, key in building infrastructures in Africa.