To establish a fund focused on infrastructure investments in Africa, the Nigeria Sovereign Investment Authority (NSIA), manager of Nigeria’s sovereign wealth fund, on Wednesday announced a joint venture partnership with Z Capital Group (ZCG), a leading private markets asset manager.
Both parties signed a Memorandum of Understanding (MoU) that would ensure strategic collaboration to tap the opportunity to leverage the unique economic and financial opportunities available within the African continent.
Under the deal, ZCG and NSIA commit to pursue equity, debt, and other blended financial instruments for investments across diverse sectors, including, but not limited to, healthcare, renewable energy, mobility & logistics, energy transition, climate-adaptive infrastructure, digital & social infrastructure, climate-smart agriculture, and green industrialization.
The strategic partnership would enable ZCG and NSIA identify, develop, and implement infrastructure projects in Africa.
Both parties would rely on their shared vision of contributing to the economic growth and social development of African economies through investments in critical infrastructure projects.
The deal, which aligns with NSIA’s core mission, would allow the partnership to contribute to sustainable economic growth, foster innovation, and address key developmental challenges across the African continent.
Besides, the joint venture would capitalise on the complementary expertise of NSIA and ZCG, combining their technical expertise, project management skills, and a deep understanding of the local context to deliver successful infrastructure solutions.
The joint venture, the partners said, would prioritise environmentally sustainable and socially responsible practices, aligning with global standards and best practices to ensure long-term benefits, as ZCG and NSIA would seek projects that deliver scalable socio-economic impact in Africa, while also generating attractive investment returns and diversification opportunities.
“We are pleased to expand our long-standing relationship with the NSIA through this unique partnership that will support our shared investment and socio-economic goals,” Founder, President, and Chief Executive Officer of ZCG, James Zenni, said of the deal.
“Given Africa’s rapidly expanding population and its increasing cultural and political influence on a global scale, we see many appealing infrastructure investment opportunities across the continent.
“We look forward to combining our investing, consulting, and technology expertise with NSIA’s deep expertise in managing large-scale infrastructure projects across multiple verticals as well as pivotal stakeholder relationships to identify and invest in assets that further drive economic development throughout the continent,” he added.
On his part, the Managing Director, and Chief Executive Officer of NSIA, Aminu Umar-Sadiq, expressed NSIA’s delight to partner with ZCG on the joint venture he said would enable it to pursue compelling investment opportunities in Africa.
“ZCG shares our vision of fostering continued economic growth and innovation across Africa. ZCG also shares our focus on investments in climate adaptive infrastructure to meet the needs of current and future generations of Africans.
“NSIA, in collaboration with ZCG, can deepen existing investments to further support Africans and play a leading role in propelling sustained socio-economic development across Africa,” he said.
Expertise say the ZCG-NSIA partnership signifies a significant step toward sustainable and impactful infrastructure investments in Africa, reflecting a shared commitment to economic development, innovation, and climate resilience in the region.
They said the collaboration marked a pivotal moment showcasing NSIA as a partner of choice in leveraging opportunities that align with the African continent’s momentum and upward trajectory in the global economic arena.
ZCG is a leading, privately held merchant bank comprising private markets asset management, business consulting services, technology development and solutions.
For almost 30 years, ZCG principals have demonstrated strong acumen and expertise in private equity, debt, and credit. ZCG has approximately $7B of AUM in asset management and its investors are some of the largest and most sophisticated global institutional investors including pension funds, endowments, foundations, sovereign wealth funds, central banks, and insurance companies.
ZCG has a global team of over 400 professionals.
On the other hand, NSIA is an investment institution of the Federal Republic of Nigeria, established by the Nigeria Sovereign Wealth Act (Establishment Act 2011), to manage and invest in a diversified portfolio of medium and long-term funds.
Its mission is to play a leading role in driving sustained economic development for the benefit of all Nigerians through building a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure, and providing stabilisation support in times of economic stress.
NSIA operates three distinct funds, the Stabilization Fund, the Future Generation Fund, and the Nigeria Infrastructure Fund.
