We believe that working together, as valued partners, is the best way to develop the infrastructure that sub-Saharan Africa needs.
Apply for funding
InfraCo Africa’s mandate is to provide catalytic early stage risk capital and development expertise and crowd in private sector investment. We will therefore not get involved in a project if it can readily attract the financing it requires from other private or DFI investors. We prioritise early stage projects that have the potential to deliver a positive developmental impact and be commercially viable but that need our risk capital and expertise to become bankable and attract private sector investment.
Through our Investments arm we can also fund the expansion of innovative infrastructure related businesses that are already commercial and need to scale-up.
When investing in developments, we will consider committing between US$1m and US$10m of risk capital by way of a straight shareholder’s agreement or convertible loan agreement, potentially splitting this commitment between a pilot and then the full project. We will in some circumstances take a majority shareholding however we expect our project partners to be committed to the project and to demonstrate this by committing their own capital, resource and time to its development. Once a project reaches financial close we will typically sell down our shareholding to take a 20-25% equity position through construction and into operations if required, typically seeking to fully exit the project once it is proven to be commercially viable. If investing through our Investments arm, we will consider investing >US$5m and will typically take a significant position, between 20% and 40%, aiming to exit within 5 to 7 years.
Regardless of when we are investing, we target to achieve a market return on our investment. Whilst we recognise that those who have invested prior to us have taken greater risk, we will not subsidise the returns of others and would expect to match our partners return’s if they are investing capital at the same time as us with the same risk profile. As having the appropriate governance in place and working to international standards (especially around HSES and ABC) is important to us, we will also expect to have a credible and strong voice on the project steering committee (prior to incorporation) and/or Board.
Working with us
Whether committing risk capital at the beginning of a project or equity financing construction or operations, we will always first obtain approval from the PIDG Investment Committee (IC). Before submitting an investment to the IC, we conduct a thorough due diligence of the project or business and its stakeholders (steps 1 and 2 below). We can commit funding prior to the financial close of a project to support its development (step 3) or at the point a project is ready to commence construction (step 4) or into an innovative operating business that needs support to scale-up or prove commercial viability (step 5).
- Receive a project proposal or identify an opportunity that meets our investment criteria;
- Learn more about the project, its sponsors and the need it seeks to address;
- Understand the project’s technology, business model, financing and developmental impact;
- Identify key risks, including health and safety, environmental and social;
- Confirm government and community support, land ownership and project rights; and
- Understand the commercial terms of our involvement and potential exit strategy, as well as those for other project partners.
Typically, 3 to 4 months
- Complete technical, legal, financial, environmental and social due diligence (undertaking studies or site visits as required);
- Get to know the key stakeholders and their aspirations for the project;
- Complete Know Your Customer (KYC) and/or reputation checks for all significant parties;
Secure host government support and confirm resourcing (as required); and
- Negotiate and secure Investment Committee (IC) approval to sign a Joint Development Agreement, Shareholders Agreement, Convertible Loan Agreement or equivalent.
Typically, 3 to 6 months
- Regularly review progress against milestones and budgets, mitigating or resolving potential issues;
- Complete feasibility studies and the Environmental & Social Impact Assessment, define Environmental & Social Plans;
- Optimise infrastructure design and apply for key permits, approvals and licenses;
- Finalise offtake / revenue, fuel supply or other operating agreements;
- Negotiate construction and operation contracts (EPC);
- Fine-tune the financial model, seek and arrange financing, mobilising internal and external expertise as needed to reach financial close; and
- Manage hand-over to the Asset Management team
Variable, between 12 and 48 months.
- Draw down financing, satisfying government and stakeholder reporting or financing requirements;
- Establish a site-based management team to oversee construction activities.
- Establish Health & Safety systems, regular reviews and training, mitigating and reporting incidents if they occur;
- Monitor progress on development impact commitments;
- Manage EPC providers, construct and commission infrastructure;
- Set-up and staff operational processes, environmental, social, health & safety, and business management systems; and
- Transition to the Operations & Management team.
Variable, between 6 and 36 months.
- Support the good governance and operation of the company;
- Monitor environmental, social, health, safety and other governance practices (including Anti-Bribery and Corruption); and
- Evaluate the developmental impact of the infrastructure and any additional initiatives the company has implemented.
Variable, for the duration of our investment
Apply for a job
People are key to our success.
We are expanding our team. We can offer you the opportunity to work in a challenging yet rewarding environment; developing and investing into innovative infrastructure projects in frontier markets that have a positive impact on people’s lives. Come and work with us.
GuarantCo Management Company Chief Executive Officer
The CEO leads GuarantCo Management Company (GMC) to deliver on GuarantCo’s vision and mission to transform the way local capital markets in low income countries can finance critical infrastructure projects and help to deliver deep and lasting impact for their populations. GuarantCo is part of the Private Infrastructure Development Group and is managed by Cardano Development through GMC.
Please send your CV and contact details to Justin Wharton by 27th July 2021
PIDG Vacancy Announcement- Group Head of Human Resources
The Group Head of Human Resources has ultimate responsibility for
human capital within the organisation. The role will be engaged in a
wide range of areas such as resource planning and recruitment,
succession planning, learning and development and employee relations.
They will be expected to use their skill and experience to support all
companies within the PIDG group on matters relating to HR,
coordinating closely with each company’s HR function.
Interested candidates should please send CV and covering letter to Emma Davies at Frazer Jones.
Closing date: 10th August 2021
Respond to a tender
InfraCo Africa relies on the strong relationships it builds with developers, investors and service providers to deliver pioneering infrastructure that changes lives. Lets work together.
If you would like us to notify you of future procurement activities, please send a short statement outlining your company’s experience and the type of services or products it could provide to email@example.com.
RFP- InfraCo Africa Investment Portfolio Valuation Advice
InfraCo Africa kindly requests a fee proposal for the Investment Portfolio Valuation Advisory services which are confidential.
Should you wish to be considered for this mandate, please provide a fee quote (including all expenses) in line with the detail provided above for the scope of work described above by COB on 23rd July 2021.