The AfDB Board of Directors on 17 December 2013 in Tunis, Tunisia approved US$ 25 million equity investment in the Second Pan African Infrastructure Development Fund (PAIDF-2), a private equity fund investing in infrastructural development, private sector competiveness and regional integration in Africa.
PAIDF.2 is in line with a second generation fund raising, targeting US$ 1.2 billion of which the South African Government's Employees Pension Fund (PIC is already emerging as an anchor investor with a commitment of some US$ 500 million in regional infrastructure.
In approving the project the Board expressed satisfaction that the investment is a good deal by the AfDB, given the management expertise of Harith, the regional competitiveness perspective of the investment, the expected creation of some 3000 jobs and the huge infrastructure needs of the continent and its linkage to Africa 50 Initiative.
While presenting the PAIDF.2 equity investment, Samuel Mivedor, the AfDB's Private Sector Portfolio manager, explained that the AfDB is building on the experience of the last six years Harith's Investment Strategy under PAIDF 2. The objective being to invest more strategically and pragmatically in power, transport, ICT, water and sanitation, as well as health infrastructure subsectors.
In 2006, the AfDB invested US$ 50 million in the first infrastructure fund (PAIDF 1), with Harith as the Regional Fund Manager. Harith has considerable experience, industrial knowledge and credible pipeline of projects across the continent.
PAIDF.2 is aligned to the AfDB's Ten-Year Strategy and its Private Sector Development Strategy.
