IFC, the private-sector arm of the World Bank, is injecting $50m into A.P. Moller Capital’s $1bn Emerging Markets Infrastructure Fund II (EMIF II), joining forces with a global consortium to plug critical infrastructure gaps in Asia and Africa.
This strategic investment aims to unlock trade, power economic growth, and tackle pressing challenges like food insecurity and climate change.
EMIF II will split its focus evenly between Africa and South & Southeast Asia, with roughly 60% of the fund earmarked for onshore transport infrastructure like ports, roads, railways, and logistics hubs. This push aims to boost job creation, regional competitiveness, and trade efficiency. The remaining 40% will target renewable energy and distribution assets, paving the way for a greener future.
“This partnership embodies our ‘doing well while doing good’ approach as we ramp up green energy and transport investments in high-growth Asian and African markets,” said Kim Fejfer, Managing Partner and CEO at A.P. Moller Capital. “We prioritize partners who share our commitment to building sustainable businesses that support economic and social development.”
EMIF II is setting ambitious sustainability goals, targeting a minimum 25% reduction in greenhouse gas emissions from its transport infrastructure portfolio. This aligns with the urgent need to decarbonize transport, which accounted for roughly 25% of global energy-related emissions in 2022 and remains a major source of growth.
Emerging economies have historically grappled with underinvestment in transport networks, hindering their growth. Despite housing over half the world’s population in 2022, Africa, Southeast Asia, and South Asia collectively account for only 16% of global primary energy consumption.
IFC brings a wealth of experience to the table, having committed and mobilized over $10bn to sustainable transport projects in emerging markets over the past decade. Additionally, since 2010, it has deployed $12bn from its own account and mobilized another $20bn for energy projects in these regions.
Moreover, IFC has pioneered commercially viable business models in renewable energy, financing over 22 gigawatts of capacity.
The EMIF II partnership aligns with the World Bank’s Green, Resilient and Inclusive Development (GRID) agenda. By investing in critical infrastructure and clean energy, it seeks to unlock economic opportunities, create jobs, and build a more sustainable future for generations to come.
