The European Investment Bank (EIB) has committed US$80 million in equity to the Pembani Remgro Infrastructure Fund II (PRIF II) to finance infrastructure projects in sub-Saharan Africa.

The investment, announced at the recent Africa Investment Forum, will fund renewable energy, digital infrastructure and transportation initiatives that support climate action, environmental sustainability and local economies and society.

Every year, Africa faces a US$100 billion gap in infrastructure financing, the EIB notes, which limits growth and access to essential services. Despite its renewable energy potential, Africa only receives 2% of global clean energy investment.

PRIF II will invest in climate action projects that support initiatives in line with the EIB’s Climate Bank Roadmap. The fund will also support projects to improve transport connectivity and achieve equitable access to secure and affordable digital infrastructure, in an aim to encourage sustainable development across the continent.

The fund will first invest in an Africa-wide data centre platform, expanding digital connectivity and addressing the digital divide, with 900 million people in Africa still lacking access to the internet.

This is the EIB’s largest commitment to an African fund to date. EIB financing will enable the fund manager to leverage additional private and public funding, helping the fund exceed its target size with total commitments worth US$355 million.

This operation is part of the EIB’s contribution to the EU Global Gateway strategy, which plans to mobilize €300 billion (US$317 billion) for global infrastructure by 2027, with half dedicated to Africa.