The IFA is focused on four key areas:

  • Targeted Upgrades to Existing Key/Strategic Infrastructure, i.e. development of Nacala port in Mozambique or increasing the capacity of Moshoeshoe airport, Lesotho
  • Investments in Targeted Infrastructure Proofs of Concept, e.g. initial elements of a planned high-density housing and transportation system, to a planned/existing industrial economic zone
  • Holistic Targeted Infrastructure (Rural and Urban) – Providing the finance for a variety of the infrastructure components, such as water, power and roads, not just one component, that are required by transformative sectors such as primary food production and processing, agri-business, manufacturing and /or business parks
  • Direct investment in enterprises that manufacture, produce or assemble goods and equipment that are used to facilitate infrastructure construction e.g. cement plants, producers of pipes, pumps, cables, bricks, tarmac and other basic materials / equipment

Client Borrowers and the ‘No-Ifs-or-Buts’ IFA Governance Regime

Our investment team will make funding decisions based on the assessed credibility of the relevant nation’s economic development strategy and the credit-worthiness of the designated private sector/parastatal-led project in question.  This is to reduce the risks to IFA investors and to ensure that investments are focused on the agreed objectives, and deployed for the agreed purposes (and only the agreed purposes). The borrowing state must be prepared to endorse proposed investments through the provision of sovereign guarantees.

The projects will be expected to be delivered by competent, market-competitive, companies and parastatals with credible and relevant commercial and governance experience.  They must have been selected through a legal tender process or contractual negotiation, or otherwise in accordance with the laws of the relevant jurisdiction. Funds will be delivered directly to the implementing enterprises rather than the treasury of the nation states in question (and, to the extent that the project is being led by a parastatal, additional financial controls will be required to ensure an independent management, audit and reporting of the funds).