Ninety One, a global asset-management firm, plans to deploy about $1 billion into infrastructure projects across Africa and Asia over the next three years, stepping up its financing of energy, telecommunications and transport assets as demand for long-term capital grows across emerging markets.

The Emerging Africa & Asia Infrastructure Fund, managed by the $242 billion asset manager, expects to increase annual investments to between $350 million and $400 million, from about $350 million currently, according to Martijn Proos, the fund’s managing director and Ninety One’s co-head of emerging-market alternative credit.

“If you roll that forward and you bring that to $350 million to $400 million per annum, then you get over the next three years that $1 billion amount,” Proos said in an interview.

Africa drives investment demand

The fund manages an active portfolio of about $1.7 billion, with nearly 85% invested across more than 25 African countries and the remainder allocated to Asia. Its investment strategy is heavily weighted toward electricity generation, reflecting the continent’s growing power requirements and the need to replace or supplement ageing energy infrastructure.

Solar, wind, biomass and hydropower projects will receive much of the new funding, alongside off-grid electricity systems serving industrial and commercial customers. The fund is also considering investments in electric vehicles, fiber-optic networks, data centers, ports, border-post concessions and toll roads.

“Power is still slightly over 50% of our portfolio and also our pipeline looks like that,” Proos said. “The economies are growing; there’s more need for power and at the same time the system needs transition.”

The investment push comes as African governments face a substantial infrastructure financing shortfall. The African Development Bank estimates that the continent needs between $130 billion and $170 billion annually to meet infrastructure requirements, leaving a funding gap of $68 billion to $108 billion each year.

Government capital supports expansion

The fund has permanent equity capital commitments from European governments, including the United Kingdom, the Netherlands, Sweden and Switzerland, alongside support from Canada and Australia. It carries an A2 investment-grade assessment from Moody’s Ratings, helping it attract additional financing from commercial lenders.

Bank borrowing accounts for about 60% of its investment funding. The fund has roughly 80 borrowers, with repayments recycled into new projects and supplemented by credit facilities from lenders including South Africa’s Standard Bank Group, Absa Group and Japan’s Sumitomo Mitsui Banking Corp.

“We have over $1 billion of debt facilities available to us and we will continue to renew and increase bank financing as required to fund our growth,” Proos said.

Ninety One expands private credit

Ninety One, founded in South Africa in 1991 as Investec Asset Management by Hendrik du Toit, separated from Investec Group in 2020 and became an independent company listed in Johannesburg and London. The firm manages money for institutional, financial adviser and individual investors across global markets.

The asset manager has been expanding its private credit and infrastructure financing activities as investors seek alternatives to traditional lending and public-market investments. Its latest expansion comes after a stronger financial performance, supported by improving institutional demand and growth in assets under management.

Ninety One reported a 12% increase in full-year adjusted operating profit, while assets under management rose 31% to £171.8 billion ($230.5 billion) for the year ended March 31, from £130.8 billion ($175.5 billion) previously.

A strategic alliance with Sanlam contributed £18.3 billion ($24.5 billion) in additional assets under management, providing a significant boost to the group’s investment base. Ninety One has also outlined plans to support infrastructure projects in Johannesburg, extending its investment ambitions beyond energy and transport assets into urban economic development.