FEDA, AFC power ARISE IIP’s $443m capital raise

Dubai, Oct. 3, 2024 – ARISE IIP, a leading pan-African developer and operator of world-class industrial parks, has announced a significant capital raise of US$443 million.
 
The funding includes a strategic US$300 million investment from Afreximbank’s development impact investment arm, The Fund for Export Development in Africa (FEDA), securing Afreximbank’s FEDA a significant stake in ARISE IIP.

Additionally, the capital raise is supported by an additional US$143 million contribution from Africa Finance Corporation (AFC).

The investment builds on debt funding relationship of over 12 years between ARISE IIP and Afreximbank, during which about US$2 billion has been provided to support ARISE IIP’s investments across Africa.
 
ARISE IIP’s total equity capital now exceeds US$1 billion, with Africa Finance Corporation (AFC) holding a majority stake, followed by Afreximbank’s FEDA and Equitane as key shareholders.

This significant capital injection is strategically aligned with both entities’ objectives to catalyse industrial transformation across Africa.

The funds are intended to accelerate ARISE IIP’s fast expansion and operational efficiency across its 12-country portfolio, that comprises key markets such as Malawi, Cameroon, Sierra Leone, Benin, Togo, Ivory Coast, Rwanda, Gabon, DRC, Congo, Chad, and Nigeria.

This investment is anticipated to strengthen Africa’s position in global value chains, aligning with Afreximbank’s mandate to promote intra-African and extra-African trade.

Gagan Gupta, the Founder and CEO of ARISE IIP said about this partnership: “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.”

Benedict Okey Oramah, the President & Chairman of Board of Directors at Afreximbank, also 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 industrialisation and export development across Africa.

“The capital boost will arm ARISE IIP with the financial muscle needed to drive Africa’s industrialisation, promote intra and extra-African trade, job creation and the general economic growth of our continent.”
Marlene Ngoyi, the CEO of FEDA, also said: “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.”
 
Samaila Zubairu, the President & CEO of AFC, said: “I would like to thank the board and management for their unwavering support in our shared mission to transform African economies.

“Our journey towards capturing greater value within the continent, by converting raw materials into intermediate and finished goods, has already shown significant progress in three countries, with an expanding pipeline of projects in ten more.

“This success reinforces our commitment to further support and invest in this important initiative, including our latest equity investment of $143 million. 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.”   (GBN)