The Nigerian Sovereign Investment Authority (NSIA) has agreed on a partnership with a U.S.-based private equity firm Z Capital Group (ZCG) to establish an investment infrastructure fund for Africa.
This is according to reports from Bloomberg, ZCG and NSIA have outlined their intentions to invest in equity, debt, and a mix of financial instruments in various sectors, encompassing healthcare, digital and social infrastructure, renewable energy, and climate-smart agriculture. Zenni mentioned that the venture is targeting a fundraising goal of $1 billion to $2 billion.
What the ZCG CEO said
Speaking on the deal, James Zenni, founder and chief executive officer of ZCG said, “Given Africa’s rapidly expanding population and its increasing cultural and political influence on a global scale, we see many appealing infrastructure investment opportunities across the continent,”
Also, Mr. Zenni explained that the partnership between NSIA and ZCG will invest in infrastructure that will propel economic growth and development.
Fund will invest in climate adaptive infrastructure
The Chief Executive Officer, (CEO) of the NSIA explained that the initiative will concentrate on supporting climate-adaptive infrastructure to address the requirements of both present and future generations of Africans.
NSIA is currently involved in infrastructure investments through entities such as the Nigeria Infrastructure Fund, aiming to enhance assets such as highways and engage in projects spanning healthcare, power, and agriculture, as indicated on its website.
Backstory
The administration of President Bola Tinubu has hinted at deploying private equities to finance infrastructure projects across the country.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun during his maiden press conference stated that President Tinubu will borrow his policies as Governor of Lagos state where he jumped on private capital to fund infrastructure across different sectors from agriculture, health care, power, waste management etc.