African Infrastructure Investment Fund III

Economic enabler: Increase the supply of reliable and affordable energy, cooking fuel, ICT infrastructure, increasing productivity, and so lead to economic growth, job creation and improved quality of life.

Top up: Pan-Africa, approximately 45 per cent Morocco (category ‘D’ country), 33 per cent Ghana (category ‘C’), 19 per cent South Africa (category ‘D’), 4 per cent Mali (category ‘A’).

AIIF III (incl. top up): Pan-Africa, approximately 34 per cent Ghana (category ‘C’ country ), 21 per cent Nigeria (category ‘B’), 16 per cent Morocco (category ‘D’), 7 per cent South Africa (category ‘D’), 7 per cent Mali (category ‘A’), 4 per cent Tanzania (category ‘B’) 4 per cent DRC (category ‘A’), 3 per cent Kenya (category ‘C’), 3 per cent Rwanda (category ‘C’), 1 per cent Congo (category ‘A’).

Urban/peri-urban households

Top up: Pan-Africa, approximately 45 per cent Morocco (category ‘D’ country), 33 per cent Ghana (category ‘C’), 19 per cent South Africa (category ‘D’), 4 per cent Mali (category ‘A’).

AIIF III (incl. top up): Pan-Africa, approximately 34 per cent Ghana (category ‘C’ country ), 21 per cent Nigeria (category ‘B’), 16 per cent Morocco (category ‘D’), 7 per cent South Africa (category ‘D’), 7 per cent Mali (category ‘A’), 4 per cent Tanzania (category ‘B’) 4 per cent DRC (category ‘A’), 3 per cent Kenya (category ‘C’), 3 per cent Rwanda (category ‘C’), 1 per cent Congo (category ‘A’).

Unknown

• Consumers: AIIF III is expected to support the provision of infrastructure goods and services to over 27 million Africans (of which 7 million will be from the top up).
• Employees: The top up will primarily support improvements that contribute to improved quality of life. Based on the existing portfolio, AIIF III is expected to support 244,000 forward jobs in the economy.

• Consumers: Those suffering from unreliable electricity, cooking fuel, internet will benefit from quality of life improvements, but these are expected to be greater for households that consume most of the product/service.
• Employees: The impact on economic opportunities is expected to be deeper in countries where there are higher poverty and unemployment levels.

• Financial additionality: Enable AIIF III to reach its minimum target size and make commitments to up to four additional infrastructure projects.
• Value additionality: Strengthen environmental, social and governance systems and provide guidance on Paris Agreement alignment methodology

2.4

Alignment Risk

• The top up is in line with CDC's new Climate Change Policy and the Government's policy on fossil fuel investment, and the fund manager has agreed to follow CDC's gas guidance tool in the event that it considers gas for power investments.

Efficiency Risk

• Whilst secondaries will feature as part of the top-up investment, understanding how different infra asset classes lead to impact outcomes is important. We expect the pipeline investees to reach more consumers through incremental increases in volumes or new connections.

Unexpected Impact Risk

• Our assessment against our Climate Change Policy indicates that subsequent investees in AIF III target sectors could create material greenhouse gas emissions. While we have recognised this, these sectors are also important from a development perspective and there are currently no viable cleaner alternatives for transport, cooking and ICT.