The International Finance Corporation (IFC) would invest $100-million in the second Africa Infrastructure Investment Fund (AIIF2), which was aimed at promoting the development of basic infrastructure on the African continent.

The AIIF2, which was established by the African Infrastructure Investment Managers (AIIM), a joint venture between Macquarie Africa and the Old Mutual Investment Group South Africa, was aimed at raising between $600-million and $1-billion to invest in unlisted equity and equity like infrastructure investments in sub-Saharan Africa.

The fund would take "significant" stakes in a range of infrastructure projects including toll roads, wind farms, other renewable energy projects, ports, water and sewerage utilities, and social infrastructure, the IFC said in a statement on Wednesday.

"AIIF2 is a vital addition to the pool of specialised African infrastructure equity capital. It will facilitate the development and sustainable operation of a number of infrastructure projects, which are critical to accelerating Africa's development," noted AIIM MD Andrew Johnstone.

The IFC, which is a member of the World Bank, said it was helping to develop assets, such as a reliable power supply and road networks, which were essential for economic growth and sustainability in the region.

"IFC's commitment signals our strong support for a fund that will address a key constraint for developers of infrastructure projects in African countries-namely the availability of equity capital," IFC infrastructure director Bernard Sheahan added.

In 2004, the AIIM raised R1,3-billion as part of the initial AIIF, which predominantly invested in South African infrastructure projects, including roads, airports, power, telecommunications, rail, ports, water and social infrastructure.