the-opportunity

The Opportunity

The COMESA Infrastructure Fund is sponsored by Harith and PTA Bank to raise capital from global investors to develop and finance infrastructure projects in the Common Market for Eastern and Southern Africa ("COMESA") region, a geographical area covering 19 African countries.

The CIF will is a closed-end Fund domiciled in Mauritius and intends to raise USD1 billion (at final close) from global investors who have appetite for long term investment. The first close is targeted at raising a minimum of USD350 million in December 2016. The Fund will:

  • Be a large-scale investor targeting investments averaging $50 million to a maximum of 10% of the total equity capitalization.
  • Target a base case net IRR of 18%
  • Adhere to risk mitigating investment policies including not investing more than 15% of total Fund commitments in any one portfolio company, not more than 25% in any one country, not more than 40% in the ICT, energy or transport sectors, and not more than 20% in the health and water and sanitation sectors.

Indicative Fund Terms

Expected Fund Size

USD1 billion

Minimum Investor Commitment

USD10 million

Manager Commitment

USD10 – 15 million

Investment Period

4 years from close - plus 1 year compulsory and 1 year discretionary

Term

10 to 12 years from First close

Distribution Policy

Return all draw-downs, 8% hurdle rate, 80/20 Carried Interest split with catch-up mechanism for Manager

Management Fee

2% of total commitments

Estimated Establishment Fee

1% of capital commitments made

Products

Equity and Quasi-equity

Target First Close

USD350 million

Expected date for First Closing

Dec 2016

African Infrastructure Market

There is significant demand  for  infrastructure  investments  in Africa. Over 20% of African households cite infrastructure as  a  primary concern while a majority of businesses citing access to energy and transportation as their primary concern. It has been estimated by the World Bank that power demand will increase from 590 TWh in 2010 to more than 3,100 TWh in 2040. Further, transportation demand is forecasted to increase between 6 to 8 times, with up to 14 times increase for some landlocked countries.

infrastructure needs

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