General Electric (GE) together with the Mara Group and Atlas Merchant Capital are leading an initiative to create a joint venture dedicated to investing in the highly underdeveloped African infrastructure sector.
The joint venture will seek to invest in infrastructure equity projects in selected countries throughout Africa. Jay Ireland, President and CEO GE Africa, commented: “This joint venture unifies three businesses with a strong commitment and expertise in infrastructure in Africa.
The joint venture is our response to an integrated infrastructure approach in Africa. We are proud to partner with the expertise and talent of Atlas Merchant Capital and Mara Group, who have an extensive footprint in Africa, to address the necessities of the African continent. We have been significantly involved in social enterprises to date and will seek to further enhance and promote social and community development in the region to complement their expertise, knowledge and entrepreneurial spirit.”
Ashish J Thakkar, Founder, Mara Group, added: “Africa is a continent of 54 countries, but there is very low connectivity between them.
Intra-African trade, a key driver for economic growth, represents only a fraction of Africa’s total trade over the past decade and this is largely due to a growing shortfall in infrastructure development. Through our joint venture with GE and Atlas Merchant Capital, we hope to tackle the funding deficit by creating a platform that has the power to truly change the lives of those living on the continent.”
Akinwumi Ayodeji Adesina, President, African Development Bank, said: “We are delighted to see this partnership between three world-class players who, together, can have a real impact on infrastructure development in Africa.
“We all know painfully well the imperative to fill Africa’s annual $50 billion infrastructure funding gap. Partnerships like these are a crucial part of the development agenda as we seek to promote social and economic development and fight poverty in Africa.”
The joint venture is well placed to act as a leading shareholder alongside sponsors of infrastructure projects and will use its relationships with lending banks and connectivity to power Africa and related institutions to meet the debt component of its funding.
African Eye Report
