The International Finance Corporation, IFC, will invest invest $100 million in the Africa Infrastructure Investment Fund 2, an equity fund established to promote the development of basic infrastructure in the continent.

The corporation says in a statement that the equity fund plans to raise up to $1 billion to invest in unlisted equity and equity-like infrastructure investments in sub-Saharan Africa.

The Africa Infrastructure Investment Fund 2 was established by African Infrastructure Investment Managers Proprietary Ltd, a joint venture between Macquarie Africa Pty Ltd, part of the Macquarie Group, and the Old Mutual Investment Group (South Africa) Pty Ltd.

The fund will take significant stakes in a range of infrastructure projects including toll roads, wind power farms, and other renewable energy projects, ports, water and sewerage utilities, and social infrastructure.

IFC, a member of the World Bank Group, is helping develop assets such as reliable power supply and road networks in sub-Saharan Africa. The region’s growth has been hindered by inadequate infrastructure.