Business Dunes sat down with Jurie Swart, CEO of African Infrastructure Investment Managers (AIIM), to discuss the critical role of private investment in Africa’s infrastructure development, the continent’s untapped potential, and how AIIM mitigates risks to attract global capital.
The African Opportunity: Why Invest in Infrastructure?
Q: Old Mutual acquired AIIM from Macquarie in 2015. What does this say about Africa’s potential?
Jurie Swart: Old Mutual’s acquisition reflects a long-term commitment to Africa’s growth. Unlike Macquarie, which focuses on large global projects, Old Mutual is expanding its African footprint—currently in 14 countries, with plans for 10 more. Infrastructure is key to this strategy.
At AIIM, we operate in two segments:
- South Africa – Local investments, particularly in alternative energy.
- Rest of Africa – International funding for pan-African infrastructure projects.
Sustainability is central to our approach. We conduct rigorous ESG (Environmental, Social, Governance) analysis to ensure responsible investments.
Bridging the Infrastructure Gap: The Private Sector’s Role
Q: AIIM estimates Sub-Saharan Africa needs $100 billion annually for infrastructure. How can private investors help?
Jurie Swart: The breakdown is roughly $70 billion in debt and $30 billion in equity—where private investors play a crucial role. However, not all projects are commercially viable.
For example, rural roads linking farms to ports are essential for development but may not attract private capital—this is where governments must step in.
The biggest opportunities? Energy. Over half of African nations generate less than 500MW—equivalent to Spain’s output, but for 900 million people. This gap presents massive potential for investors.
Attracting Investment: Policy, Stability, and Cross-Border Projects
Q: Is Africa doing enough to attract private capital?
Jurie Swart: Africa’s project financing is still tariff-driven, not subsidy-dependent—similar to developed markets 20 years ago. This transparency is a strength.
But more can be done:
✔ Liberalized pension fund regulations to boost local investment.
✔ Consistent policy frameworks for stability.
✔ Government commitment to long-term infrastructure plans.
Q: Can Africa develop cross-border infrastructure like other regions?
Jurie Swart: It’s a long-term vision. While some successful examples exist, the priority should be national projects first, then regional integration.
South Africa’s Challenges and Renewable Energy’s Role
Q: Why hasn’t South Africa reached its full potential?
Jurie Swart: Inconsistent leadership over the past decade stalled progress. But President Cyril Ramaphosa’s business acumen and strategic vision are encouraging.
Q: How can alternative energy grow in South Africa’s energy mix?
Jurie Swart: Coal remains a major employer, but renewables offer cost efficiency, environmental benefits, and job creation. The key is balancing coal and renewables, especially in remote areas.
Why Invest with AIIM? Mitigating Risk in Africa
Q: How does AIIM convince investors that Africa is worth the risk?
Jurie Swart: Three key reasons:
- Track Record – 18+ years, $2+ billion raised, 40+ investments across 15 countries.
- Risk Mitigation –
- Hard currency deals (dollar-based tariffs).
- Political risk insurance.
- Partnerships with state-owned utilities.
- Growth Potential – Africa’s regulatory improvements, young population, and urgent infrastructure needs make it a high-return market.
The Future: Power, Transport, and Sustainable Growth
Q: What’s next for AIIM?
Jurie Swart:
- South Africa: Expanding in renewables and gas, possibly water solutions.
- Africa:
- 60% in power generation (thermal for base load).
- 20% in transport (roads, ports).
- Midstream energy (pipelines, storage).
Q: What separates success from failure?
Jurie Swart: Sustainability is non-negotiable. We prioritize ESG, local expertise, and deep regional knowledge—that’s what sets AIIM apart.
Final Thoughts: A Vision for Africa
Q: What’s your dream project?
Jurie Swart: Not just one project—but building momentum across Africa. Infrastructure drives development, and with a young, dynamic population, the continent’s potential is limitless.
