AIIM acquires 60% stake in DSM Corridor Group Tanzania

© Ruslan Ivantsov via 123RF

AIIM is a member of Old Mutual Alternative Investments (OMAI), and develops, advises and manages private equity infrastructure funds designed to invest long-term institutional equity in African infrastructure projects.

The deal was executed via a strategic holding company - African Ports and Corridors Holdings (APCH) - which will facilitate the acquisition of further terminals and other corridor expansions across Sub-Saharan Africa.

Servicing multiple landlocked countries

AIIM CEO, Jurie Swart, explains that the Port of Dar es Salaam is forecast to grow to 41.5mtpa by 2028, which represents almost three times the current volume. The port and surrounding infrastructure is set to be refurbished under the lauded Dar es Salaam Maritime Gateway Project which is jointly funded by the World Bank, the United Kingdom’s Department for International Development (DfID) and TradeMark East Africa (TMEA). The port’s strategic location services multiple landlocked countries including Zambia, Uganda, DRC, Rwanda, Burundi and Malawi.

Key dry bulk commodities flow through these corridors and the planned rehabilitation of the Central Corridor Railway project will further anchor the port as a critical East African hub.

A strong pipeline of opportunities

Swart says that the combination of a critical requirement for greater efficiency in African ports and the development of private investment programmes is driving a strong pipeline of opportunities, particularly in the dry bulk cargo area.

AIIM has circa US$1.6 billion of funds under management with a track record extending across six infrastructure funds, and over 16 years’ experience managing investments in 19 portfolio companies across the renewable energy, power generation, transport, port logistics and telecommunications sectors.