An Investment Partnership that Mobilizes Institutional Investors for African Infrastructure 

With institutional investors increasingly accepting infrastructure as a distinct asset class and looking for opportunistic investments globally as part of their infrastructure investment strategies, USAID’s Office of Private Capital and Microenterprise (PCM) and the Africa Private Capital Group of the Southern Africa Mission have partnered with the National Association of Securities Professionals (NASP) in a program for “Mobilizing Institutional Investors to Develop Africa’s Infrastructure” or “MiDA”. The initiative seeks to facilitate and expand opportunities for infrastructure investment in Sub-Saharan Africa for investors seeking higher returns, while making a significant impact on development and advancing U.S. interests in the region.

MiDA exemplifies mutually beneficial U.S.-Africa investment opportunities

The NASP-USAID Investment Partnership’s objective is to expose U.S. institutional investors to opportunities to co-invest with their African counterparts in Sub-Saharan Africa’s infrastructure as part of their global infrastructure investment strategies, with frontier market allocations targeting the region’s enhanced yields and low correlation with existing portfolios. Further, MiDA seeks to increase opportunities for U.S. financial services providers seeking to deepen relationships with African institutional investors who currently hold an estimated $1 trillion in assets, of which billions are invested in the United States. According to a McKinsey analysis, the region’s long-term fundamentals remain strong with domestic spending totaling over $4 trillion in 2016.  Listed by the IMF as the second fastest growing region through 2020, African markets increasingly offer attractive opportunities for U.S. businesses and investors.

By expanding partnerships, facilitating co-investment opportunities with African and other asset owners, and providing transactions support, MiDA represents a mutually beneficial U.S.-Africa commercial and development relationship.

Photo Credit:
Fields and Water: The Ethiopian Government is focusing on developing agriculture, livestock exports and hydro power to drive the economy. Photo by Nena Terrell/USAID.