In an interview with Africa Infrastructure Investment Managers (AIIM), the focus on food security in Africa and its potential for long-term investment opportunities was explored. The discussion highlighted the importance of defining food security from an investor’s perspective, emphasizing three key themes: digitization, energy transition, and mobility and logistics. AIIM’s investment strategy primarily targets temperature-controlled logistics, port and inland infrastructure, and the transportation, storage, and distribution of primary bulk food commodities. These efforts have successfully attracted sovereign wealth capital from the Middle East and Asia-Pacific regions.
The interview delved into the Middle East’s interest in arable land and water resources, while Africa possesses over 60% of the world’s uncultivated arable land. AIIM’s approach to land rights and long-term concessions in strategic areas for cold storage and port businesses was discussed, ensuring stability and mutual benefits for investors and the continent. The role of private equity (PE) and infrastructure investors in improving food security was explored, with AIIM’s investments spanning the value chain, including clean cooking, cold storage, and logistics.
The conversation then turned to AIIM’s evaluation criteria for food security investments, emphasizing financial returns and sustainability measures. Key metrics include energy efficiency and gender diversity in the workforce. The interview also addressed the current state of food security and infrastructure in Africa, emphasizing the critical role of private capital in developing infrastructure, either directly or indirectly. AIIM’s focus on supply chain resilience and the importance of addressing food security in the context of urbanization and population growth were highlighted.
The interview concluded with a discussion on AIIM’s investment strategy, considering secular trends in data consumption, energy transition, and mobility and logistics. The company’s approach to market selection, considering factors like liquidity and global buyer attraction, was explained. The interview concluded with an optimistic outlook on Africa’s investment opportunities, particularly in the food security sector, and AIIM’s commitment to playing a role in addressing global geopolitical trends.