EAIF secures A2 credit rating from Moody’s

The Emerging Africa Infrastructure Fund (EAIF), a private infrastructure development group, has recently been assigned a foreign currency long-term issuer rating of A2 with a stable outlook by Moody's Ratings, a prestigious ratings agency. This significant development marks a new chapter for the EAIF as it enters into a growth phase aimed at bridging the infrastructure financing gap in Africa. In a recent interview on CNBC Africa, Martin Pruss, Director at Ninety One and the Fund Manager of the Emerging Africa Infrastructure Fund, shed light on the impact of this credit rating for the fund and its future prospects. Pruss highlighted the EAIF's role as part of the Private Infrastructure Development Group, emphasizing its focus on providing high-impact development capital in forms such as equity and guarantees. Pruss explained that the decision to seek a Moody's rating was driven by the fund's expansion plans and its ambition to attract institutional investors to the Africa infrastructure asset class. With equity investments from four European governments anchoring the fund, EAIF leverages a mix of development finance institutions, commercial banks, and institutional investors to mobilize capital for infrastructure projects. The EAIF, established in 2002, has a track record of closing 90 projects with a total investment of $2.1 billion and mobilizing private sector commitments of $15.2 billion. Through its unique blended finance model, the fund recycles profits and cash flows to sustain its capital base and has completed seven rounds of debt financing exceeding a billion dollars. Looking ahead, the EAIF aims to address the $100 billion infrastructure finance gap in Africa by exploring opportunities in various sectors, including power, transport, water, housing, and digital communications infrastructure. The fund has been actively supporting capital markets by anchoring bonds for projects like Liquid Telecoms and Helio Towers Africa. Pruss highlighted some notable projects that the EAIF has been involved in, including the Kigali Bulk Water Project in Rwanda, a pioneering water PPP project in East Africa. He also mentioned the border post PPP project on the Zimbabwe-South Africa border, where the fund's involvement has led to significant reductions in waiting times and costs for traffic and cargo flows. The A2 credit rating from Moody's is expected to enhance the fund's credibility and facilitate its engagement with institutional investors for future capital raises. Pruss expressed optimism about attracting further investment in the coming months, building on the success of previous partnerships with global investors. In conclusion, the EAIF's A2 credit rating is a testament to its long-standing commitment to driving growth and development in Africa through sustainable infrastructure investments. As the fund embarks on a new phase of expansion, its role in closing the infrastructure finance gap and catalyzing economic development on the continent is poised to make a significant impact.