South African-based infrastructure investor Harith has partnered with Greenstone Equity Partners, one of the largest independent fund placement firms in the Middle East, to raise capital from GCC investors for its latest Pan African Infrastructure Development Fund II (PAIDF II).

Emile Du Toit, Head of PAIDF II at Harith, said: “We see huge potential for investors from the Middle East region to invest in key projects available across the continent in the sectors of energy, telecommunications, transport, and water services.”

“According to industry estimates, over 20% of African households cite infrastructure as their primary concern, while a majority of businesses cite access to energy and transportation as their primary concern,” he said.

The Fund, which has already raised $439m by June 2014, primarily from African institutional investors, requires around $1bn in capital to invest in energy, telecommunications, transport and water projects, both greenfield and brownfield, across the African continent.

Omar Al-Gharabally, President of Greenstone Equity Partners, said: “Together, combined with our expertise and regional market knowledge, we are confident that we can provide our clients with lucrative opportunities of high returns.”

Harith is one of the largest domestic infrastructure fund managers in Africa that runs over $3bn in assets under management.

Pan African Infrastructure Development Fund II was formed to focus on projects in the areas of energy, transportation, information communications technology (ICT), health, water and sanitation.

PAIDF II has identified a strong infrastructure deal flow of more than 28 projects with a total value of more than $11bn in the key focus sectors.

“There is a significant demand for infrastructure investments in Africa that is growing at a fast economic growth rate,” said Du Toit.