Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF), has signed a master cooperation agreement (MCA) with the International Finance Corporation (IFC), joining 33 development finance institutions worldwide that have also signed the MCA.
The EAIF is the first third-party fund to have signed the MCA, and consequently, the MCA will come into operation when the IFC is the mandated lead arranger of the debt package for an infrastructure project involving the two parties.
The core benefits of the MCA is that it can save time and money as the signatories become familiar with using the same approach and processes. These savings can be passed on in the form of more infrastructure projects happening faster in African countries and in reducing the amount of capital used in administration.
The MCA sets out a range of mutually agreed processes on reaching contractual agreement and allocation of responsibilities on each project.
EAIF Ninety One director Martijn Proos says the MCA is an “exciting development” for the EAIF. “It helps widen and deepen our new business pipeline. It will accelerate the time it takes to get good projects financed and deliver efficiencies in human resources and legal and administrative costs.”
He adds that being the first third-party fund to sign such an MCA with the IFC marks out EAIF, PIDG and Ninety One as an increasingly effective and successful presence in the African infrastructure market.