Following a competitive tender process that brought interest from over 30 companies, from across Europe, Africa and North America, the Emerging Africa Infrastructure Fund (EAIF) has appointed Investec Asset Management as its fund manager.

David White, Chair of EAIF, said the Fund has established itself as a market leader in infrastructure finance in Africa and is now ready to be a bigger and more potent force in the economic development of sub-Saharan Africa.

“We were impressed with Investec Asset Management’s determination and agility, its commitment to our core mission and its belief in a successful future for Africa. Their appointment as the Fund’s manager means that we now have the final element in place to power our growth strategy. Africa is Investec Asset Management’s home territory. From African roots it has built a worldwide business and a demonstrable track record as a good corporate citizen,” he said.

The $670m EAIF is a member of the Private Infrastructure Development Group, and is funded by the governments of the UK, the Netherlands, Sweden and Switzerland.

Established in 2002, the Fund provides debt finance to private sector infrastructure projects in sub-Saharan Africa.

To date, it has committed over $1.2bn to 63 projects in 20 countries.

In addition to the equity provided by the UK, The Netherlands, Sweden and Switzerland, lenders include a combination of private sector financial institutions and development finance institutions.

Hendrik du Toit, CEO of Investec Asset Management, said: “The private sector has a crucial role to play in unlocking the conditions for the sustainable, long-term development of Africa’s infrastructure. A major initiative of its kind globally, this fund aims to provide growth capital, expertise and support to these projects with the aim of stimulating economic development, encouraging growth and employment, and fuelling Africa’s long-term development.”

As one of the largest third party investors in private equity, credit, public equity and sovereign debt across the African continent, Investec Asset Management will integrate the Fund and its existing team into its African investment platform which includes over 73 Africa-focused investment professionals.

Nazmeera Moola, Co-Head of Africa Fixed Income at Investec Asset Management, who will head EAIF operations, said: “The large demand for funding on the continent and the necessity for effective infrastructure development provides a strong investment backdrop.”

“This offers a compelling entry point into the long-term African growth story. We are very well positioned to take advantage of these opportunities with our extensive experience of investing in emerging markets, underpinned by our heritage, which gives us deep insight into the drivers of African markets,” she said.

Moola will work in tandem with EAIF’s Executive Director, Emilio Cattaneo, who is a direct employee of the Fund, and has been central to the development of the Fund’s growth strategy.

Investec Asset Management will manage the entire process from seeking out projects, evaluating loan applications, carrying out due diligence and managing the administration of transactions.

Investec Asset Management will also market the Fund internationally and monitor the loan portfolio.

Launched in South Africa in 1991, Investec Asset Management is one of the first asset management firms to build a global franchise from emerging market origins offering a broad range of Africa-specific investment strategies.

The announcement follows the recent launch of a joint venture between Investec AM and Growthpoint to invest in pan-Africa real estate and provides a further opportunity to attract international capital to African markets.