ARM-Harith Infrastructure Fund is an infrastructure equity fund based in Lagos, Nigeria, and invest in West Africa, with some significant exposure in Nigeria given the size of the market. a joint venture between two institutions, ARM – one of the largest non-bank financial institutions in Nigeria managing one of the largest pension funds – and Harith General Partners, pan-African fund managers based out of South Africa. Combined their assets under management are about $3bn and both institutions have a strong track record in infrastructure. The joint venture came out of the objective to target Nigeria and West Africa but also to channel Nigerian regional pension fund capital in addition to international capital interested in West Africa specifically. We manage capital from Nigerian pension funds as well as development finance institutions such as the African Development Bank.
Data that came in last year says that of the FDI that came into Africa for infrastructure about 60% went to energy and the balance went to other forms. We can see energy is by far the greatest recipient of infrastructure allocation. Energy is one of the significant gaps and over the last 10 years capital and intellectual and social resources have been applied to the energy gap. There has been a lot of success in energy financing, which is why some African countries are at a position where from a generation standpoint there is excess supply. However, access to and delivery of power in a broad-based and equitable manner is yet to be achieved. The delivery of energy for maximum impact is still something that needs to be addressed. A resource repository for centuries, a lot has been hydrocarbons, but there’s a lot of unexplored mineral assets that fit into the battery supply chain for example, and value additions in the recycling of plastics for components for the renewable sector. Africa needs to take a step back and plan for the next 50 years and make sure we add value and find a way to enhance what we’re producing. The era of hydrocarbon exports is coming to an end. Africa has the lowest emissions but is the most vulnerable does not mean Africa should not be part of the pathway to mitigating climate change. It simply means the way Africa does it and timelines and priorities need to be fit for Africa. The reality is that Africa is so vulnerable to climate change that adaptation projects are actually crucial. Things like flood bank reinforcement, agriculture yield enhancement, drought and irrigation management – these are all climate projects.