FEDA and AFC raise $443M for Africa’s industrial growth through a partnership with ARISE IIP, aiming to boost sustainable development and exports.
In a significant development for Africa’s industrial growth and internal trade, the Fund for Export Development in Africa (FEDA) and Africa Finance Corporation (AFC) have partnered with ARISE Integrated Industrial Platforms (ARISE IIP) to raise $443 million. This capital raise is aimed at accelerating Africa’s sustainable industrialization and enhancing export development across the continent. The strategic alliance marks a pivotal moment in the region’s drive to harness its industrial potential and improve its positioning in global trade.
According to a statement from FEDA, the partnership aims to “mobilize significant capital to scale ARISE IIP’s proven industrial platform model.” The model has already delivered remarkable successes in West Africa, with a particular focus on fostering local value addition, creating jobs, and reducing environmental impacts.
Key Investments in Industrial Platforms
ARISE IIP, a leading industrial platform developer, is recognized for its efforts in creating world-class industrial ecosystems in Africa. The company’s integrated approach focuses on value chains in agro-processing, mining, and forestry, offering much-needed infrastructure that supports economic diversification. ARISE IIP has demonstrated its commitment to building sustainable and inclusive platforms that benefit local economies.
The $443 million capital raise will be instrumental in expanding these platforms and bolstering ARISE IIP’s ability to replicate its success across the continent. As noted in the announcement, ARISE IIP’s Chief Executive Officer, Gagan Gupta, remarked, “This equity partnership with Afreximbank significantly enhances our financial capacity to execute our pan-African industrial development strategy. It’s a strong vote of confidence in our business model and growth prospects.”
Sustainable Development and Job Creation
One of the main objectives of this collaboration is to drive sustainable development while fostering job creation across Africa. By enhancing value addition within the continent, ARISE IIP’s platforms aim to create long-term economic benefits for the local population, including employment opportunities and improved livelihoods.
According to AFC, the project aligns with their commitment to supporting industrial projects that drive economic growth. As highlighted by AFC’s President and CEO, Samaila Zubairu, “We are also delighted to formally welcome Afreximbank-FEDA as a new shareholder, having previously supported us through debt financing. Their participation, alongside other prospective investors, is a testament to the strength and de-risked nature of our ecosystem value chain industrial platform. We look forward to continuing our partnership to drive industrialization and sustainable economic growth across Africa.”
Fostering Africa’s Export Growth
FEDA, an investment arm of Afreximbank, is focused on driving export-led industrialization in the region. Their involvement in the ARISE IIP capital raise underscores the importance of industrial platforms in positioning Africa as a competitive player in the global market.
Professor Benedict Oramah, President of Afreximbank and Chairman of FEDA, said, “We are very pleased with our latest investment in ARISE IIP which is aligned with Afreximbank’s strategic pillars of promoting intra African Trade and facilitating industrialization and export development across Africa. The capital boost will arm ARISE IIP with the financial muscle needed to drive Africa’s industrialization, promote intra and extra-African trade, job creation and the general economic growth of our continent.”
Marlene Ngoyi, CEO of the Fund for Export Development in Africa (FEDA), stated, “Our investment in ARISE IIP is a critical step towards fostering sustainable industrial growth across Africa. By supporting the development of high-impact industrial infrastructure, we are helping to create an environment that will drive economic diversification, boost value-added production, and position Africa as a key player in global trade.”
Through this strategic partnership and the capital infusion, ARISE IIP is poised to expand its industrial projects across the continent, unlocking Africa’s potential for export-led growth and long-term economic sustainability.
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