Africa-focused private infrastructure assets under management increased to $44bn at the end of 2020, almost double the $24bn at the end of 2011, yet the asset class is still largely untried and untested. However, an increasing number of successful exits are demonstrating that infrastructure in Africa is investable.

There are, however, considerable opportunities for private investors in Africa, as comparatively low penetration, the scale of infrastructure needs, and public sector finance constraints have created a promising environment for fund managers.

In the latest in our Entry to Exit series, we show how infrastructure investments in the region can provide strong financial returns as well as socio-economic benefits. We spoke to African Infrastructure Investment Managers (AIIM), a member of Old Mutual Alternative Investments, to explore the financial and social impact of their successful toll road developments in South Africa, and how a focus on the needs of all stakeholders helped to deliver on multiple fronts.

If you would like to contribute to a future edition of our Entry to Exit series, we’d love to hear from you. Please get in touch with us at content@preqin.com.