To address challenges and opportunities for unlocking investment on the continent, the Africa Investment Forum (AIF) was created as a multi-stakeholder, multi-disciplinary platform dedicated to transform Africa’s investment landscape and make it more attractive.
The Africa Investment Forum serves as a leveraging platform that will tilt the balance of capital toward Africa’s critical sectors to achieve international priorities such as the Sustainable Development Goals, the African Development Bank’s High 5 priorities and the African Union’s Agenda 2063.
This goal translates into three mutually reinforcing objectives: (a) Advancing projects to bankable stage through more effective project preparation as well as advisory support that advances deals in the AIF pipeline; (b) Capital raising by partners, lenders and investors for increased co-financing for bankable projects; and, (c) Accelerating financial closure of deals through a coordinated approach.
The Africa Investment Forum’s distinguishing feature is its capacity to address some of the greatest hurdles the continent faces in attracting investment. It does this by profiling transformational projects, matching these projects with investors, convening project stakeholders and offering de-risking tools, designed by the African Development Bank and its partners, which offer investors a safety net.
The Africa Investment Forum was created by the African Development Bank with a number of partner institutions: Africa50, the African Import and Export Bank (Afreximbank), the Africa Finance Corporation (AFC), the Trade and Development Bank (TDB), the Development Bank of Southern Africa (DBSA), the Islamic Development Bank (IsDB) and the European Investment Bank (EIB). These eight are the Africa Investment Forum’s Founding Partners.
Africa Investment Forum Boardrooms are invitation-only meetings between investors, project sponsors, stakeholders and key government officials, with the objective of attracting investment interest in specific deals.
The Africa Investment Forum accepts private sector projects or Public-Private-Partnership (PPP) projects across various stages of readiness for boardroom consideration. The minimum ticket size for Boardroom eligibility is $30 million. Follow this link to learn more about the Forum’s deal selection criteria.
The Africa Investment Forum recognizes four categories of partner:
- Founding Partners are the 8 institutions, including the African Development Bank, that founded the Africa Investment Forum;
- Institutional Partners are institutions that share the Africa Investment Forum’s vision and wish to join its platform;
- Knowledge Partners are entities that align with the Africa Investment Forum’s goal of generating valuable knowledge products and services;
- Media Partners produce content that contributes to and aligns with Africa Investment Forum objectives.
The Forum welcomes partnership applications for all the above categories, except Founding Partners.
Kindly click on this link to learn more about becoming a sponsor, partner or member.
Africa Investment Forum sponsors are institutions that support Market Day events and regional/non-regional investment roundtables. They fall into one of three categories: Platinum, Gold or Silver sponsors.
There are a few other ways to collaborate or participate in the Africa Investment Forum. These include:
- Investors – if you are interested in curated projects that are looking for investment across a wide range of financing instruments
- Project Promotor – if you are a project owner/sponsor or government structure promoting a project that aligns with the Africa Investment Forum selection criteria.
- Professional Service Provider – if you are an EPC contractor, consulting firm or individual looking for financial, transaction and structuring advisory opportunities in projects existing on the Africa Investment Forum Platform
- Entrepreneurs – Youth with innovative and promising projects that are looking for small amounts of capital in order to achieve scale.
Becoming a member of the Africa Investment Forum is free of charge for all delegates, and there are no annual, registration or subscription fees charged to remain an active member on the platform.
Delegates are invited to attend Market Days but must cover their own logistics costs.
The Africa Investment Forum also welcomes projects with a ticket size under $20 million. Projects of this size are showcased in Marketplace activities such as Business 2 Business (B2B) meetings, SME Track and the AIF Deal Galley.
Questions about The Platform
Two major steps are required to benefit from the AIF structuring and deal advisory services to ensure that your project is able to meet its funding needs in order to reach financial closure:
- A project must meet basic AIF requirements such as: alignment with domiciliation requirements, incorporation, financial & economic viability, alignment with strategic and national development priorities, transformative impact, positive social and environmental impact, a strong management team and support from the hosting government.
- A project must provide information on time in order to access the necessary advisory and structuring support in order to advance and attract financing.
Further, projects can also be featured on the AIF digital platform, a live database of private and public partnership projects that aims to increase the likelihood of attracting investment through matchmaking capabilities and improved project documentation among other services.
Yes, the AIF mandate and activities include a credit enhancement workstream that aims to provide risk mitigation instruments from a number of development finance institutions (DFI) to de-risk private sector investment at scale, including those from smaller or high-risk profile countries.
A practical example is the AIF-led Lusophone Compact, which aims to accelerate the development of Portuguese-speaking countries in Africa by crowding in private sector-driven investments (including guarantee instruments) and by leveraging the economic and technical capabilities of Portugal and Brazil.
Similar efforts will be designed and implemented in other regions to widely reduce transaction risks on the continent.
Questions about the Market Place
Below are the regional and non-regional investors that exist at the AIF platform:
- Institutional Investors (incl. Sovereign Wealth Funds, Asset Managers, Unit Trusts, Mutual Funds and Pension Funds)
- Development Finance Institutions
- Guarantee Providers (incl. ECAs, insurance companies)
- Multilateral Entities (e.g. MCC, USAID, Trust Funds, concessional donors)
- Funds (incl. Private Equity / Venture Capital Fund / Permanent Capital Vehicles)
- Commercial / Investment Banks
- Philanthropists / Foundations / Royal & Family Offices / High net worth individuals
- Alternative Investors (incl. Islamic Finance)
- Strategic Partners (incl. Technical Partners, Project Developers, Private Investors)
The Investor Blast (Deal Reach-out Survey) was launched in 2018 as a survey mechanism and automatic process through which investors are targeted and invited to express an interest to participate in Boardroom sessions ahead of AIF events such as the Market Days (3-day event), Investment Roundtables or Virtual Boardrooms.
The AIF has a database of investors and project sponsors that are leveraged during the matchmaking process to ensure that interests captured are reiterated during boardroom/investment conversations and later followed up to materialize into actual commitments.
The Deal Tracker
The Deal Tracker is a dynamic tool that monitors the conversion of investment interest expressed during the Boardrooms sessions, captures projections on investments secured and facilitates the deal progress towards financial close.
Throughout the tracking phase, the AIF team engages closely with Project Sponsors, the Bank’s sector/regional teams and Africa Investment Forum Founding Partners to determine the categorization of deals per closure projection, as well as to address residual bankability gaps, and ensure that additional investors are crowded in to advance deals to financial closure.
The Deal Tracker classifies the portfolio according to three segments. The categorizes are as follows:
- Advancing projects to bankable stage,
- Capital raising and,
- Accelerating financial closure of deals through a coordinated approach.
To date, 8 deals representing $ 2.183 billion have fully secured investments.