Vector Logistics is South Africa’s leading frozen infrastructure logistics operator, providing multi-temperature warehousing and distribution, supply chain intelligence, and sales and merchandising solutions. The company’s substantial network of warehouses provides reliable cold chain infrastructure for food products, which increases shelf life and reduces food waste.
Having purchased Vector Logistics, A.P. Moller Capital is ready to support the company’s continued growth, capitalizing on its extensive network and long-standing history of investing and operating in Africa. A.P. Moller Capital will also see to the continued implementation of a strong Environmental, Social and Governance (“ESG”) agenda at Vector Logistics to ensure a sustainable future.
“Over the past 18 years, Vector Logistics has grown significantly, and A.P. Moller Capital is committed to furthering the growth of Vector Logistics and providing our customers with market leading solutions to their cold chain business. A.P. Moller Capital is guided by an ethos of ‘doing well while doing good’ and we see Vector Logistics as a clear example of that. We look forward to pursuing a bright future together,” said Joe Nielsen, Partner at A.P. Moller Capital.
During 2022, the Africa Infrastructure Fund I was fully invested and added three new assets to its portfolio. The portfolio now includes eight companies and a total of 16 infrastructure assets that focus on transportation and energy across nine African countries.
To summarize the social impact of the portfolio, the Joint Impact Model estimated that AIF I investments supported 147,000 jobs (of which 40% is female employment) and contributed USD 1,181m to GDP in nine African countries. Compared to 2021, this represents an increase of more than one third. Our strategy for climate impact remained to avoid GHG emissions by prioritizing renewable energy and where this was not possible, we worked to reduce GHG emissions. In 2022, on a like-for-like basis, the portfolio emissions increased by approximately 6%. Furthermore, the portfolio companies provided electricity to the equivalent of over 11 million people, particularly in Côte d’Ivoire but also Kenya and South Africa.
For more information about Africa Infrastructure Fund I's impact, please download the 2022 ESG report.
“Vector Logistics is highly respected with a long track record in South Africa, and we are excited to contribute to its transformative vision for both the industry and the region. Vector Logistics’ reliable operations enable maintenance of the cold chain for food products, which increases shelf life and reduces food waste. We see a growth opportunity for Vector Logistics, and we believe that our experience and our network will help to drive this growth,” said Joe Nielsen, Partner at A.P. Moller Capital.
A.P. Moller Capital has established a new office in Singapore and is ramping up its investment programme in the South and South East Asia region, aiming to commit over $750mn in capital commitments into infrastructure platforms in the region.
A.P. Moller Capital, an asset manager and part of the A.P. Moller Group, a diversified group of industry leading companies, manages over USD 1.5 bn and has invested in 16 projects, which have created more than 100,000 jobs in local communities and provided investment capital to support food and mineral security, decarbonization and sustainable demographic and economic growth. With the establishment of the new office in Singapore, A.P. Moller Capital is taking its next step on this journey.
Kim Fejfer, CEO and Managing Partner of A.P. Moller Capital: “We are very excited to now also offer our leadership and experience within Transport, Logistics and Decarbonization to South and South East Asia, expanding our focus of investments and developments in high growth markets, while generating attractive returns to our investors. The opening of the Singapore office demonstrates our commitment to building a highly successful long term investment business across the Asia region.”
The new office and A.P. Moller Capital’s Asia strategy and team will be led by Partner, Dhruv Narain. Additionally, former Carlyle Group Singapore executive, David Tung, who is also a Non-Executive Director of A.P.Moller Capital will serve as a Company Director and Senior Advisor, based in Singapore.
Dhruv brings with him over twenty years of experience in investing in infrastructure asset strategies. Prior to joining, Dhruv was part of the Global Infrastructure Investments leadership team, Global ESG Committee and Real Assets Investment Sub-Committee at GCM Grosvenor, and Head of Global Direct and Co-Invest Infrastructure at Abu Dhabi Investment Council. He has also held investment roles at the World Bank Group’s IFC, Macquarie Capital and HSBC.
“At a time of unique economic, environmental and demographic transition, there is a pressing need to invest in building the infrastructure for the decades ahead - to deliver food and mineral security, to manage climate change and to optimise scarce resources - and I am proud to be joining a company that focuses on exactly that” says Dhruv Narain.
With Dhruv’s arrival we will strengthen our focus on investments outside Africa.
“Dhruv brings with him over twenty years of experience in investing in infrastructure asset strategies as well as important leadership skills, key competences in our endeavors of building sustainable growth and creating social impact in high growth markets” says Kim Fejfer, Managing Partner in A.P Moller Capital.
Lumika Renewables, a joint venture between A.P. Moller Capital and Reunert, is a Commercial and Industrial (“C&I”) renewable developer in Africa. Lumika expands with its first project in Egypt with a signed agreement to develop, construct and provide electricity to Lafarge Egypt. The project, with a capacity of 50MWac, will be the largest C&I project on the continent with the aim to start electrical production in Q1 2024
The goal of the project is to reduce Lafarge Egypt’s carbon footprint by providing clean reliable power to its cement factory for its daily operations. Lumika Renewable has committed to a Net Zero emissions target by 2040, a goal that is the driving force behind Lumika’s offering to its clients and future customers to reduce their dependence on fossil fuels.
“In A.P. Møller Capital, we believe that strong partnerships, collaborative efforts and sharing of expertise are key in enabling the industry to reach the shared ambition. We are proud to now support the Mærsk McKinney Møller Center for Zero Carbon shipping and look forward to join minded partners and industry experts,” says Kim Fejfer, CEO at A.P. Moller Capital.
The Mærsk McKinney Møller Center for Zero Carbon Shipping was established in 2020 as an independent not-for-profit research and development center. The Center works to accelerate the transition towards a net-zero future for the maritime industry by developing new net-zero fuel types and technologies in close collaboration with partners across the shipping value chain.
The past year, despite the global pandemic, was one of achievements and progress for A.P. Moller Capital, especially with regards to our social and environmental impact. Compared to 2020, the social impact of the AIF I portfolio increased by a factor of four. Our strategy for climate impact remained to avoid GHG emissions by prioritizing renewable energy and where this was not possible, we worked to reduce GHG emissions. Read more about our progress in our Annual ESG Report 2021.
“In 2021, our portfolio created positive social impact and we used our influence on portfolio company boards to continually push to improve ESG performance. We look forward to discussing our enhancements to the strategy as we continue to grow throughout 2022,” says Carole Welton Kaagaard, Head of ESG
“This marks A.P. Moller Capital’s second investment in the Kenyan power sector, where we are adding a similar and well-run power plant to our portfolio, reaching a combined capacity of 140MW. As a responsible investor, A.P. Moller Capital is committed to being a key investor in the Kenyan power sector and actively participate in Kenya’s energy transition efforts. We have already taken steps to reduce our emissions footprint, and will continue to support the Government of Kenya and all other stakeholders in the energy transition efforts through gas/green fuel conversion while also delivering energy cost savings,” says Lars Reno Jakobsen, Senior Partner at A.P. Moller Capital.
KEG operates across the LPG value chain in East Africa and owns the largest LPG import marine and storage terminal in the region.
Today, 80% of Kenyan households cook using solid fuels, such as wood and charcoal, which contribute to deforestation and cause severe indoor air pollution with adverse health consequences. This investment supports the transition away from the use of these solid fuels and towards the use of LPG, a cleaner method of cooking.
For every household converted from using charcoal to LPG, approximately 1 tonne of C02 emissions are saved per annum. We therefore estimate that KEG’s businesses will avoid more than 5 million tonnes of CO2 emissions during our hold period. Additional benefits include reduced deforestation, as it is expected that over 100 million trees will be preserved as consumers use LPG instead of firewood/charcoal and improved air quality, which is expected to benefit over 3.2m people.
With this acquisition, A.P. Moller Capital aspires to further improve the supply of renewable energy in Cape Verde – and the African continent:
“A.P. Moller Capital has a clear vision to be an active long-term participant in the global energy transition, including to support the growth of renewable power generation combined with stable energy supply. We are pleased to partner with Africa Finance Corporation (AFC) and the local shareholders in Cabeolica to ensure the continued supply of reliable and cost-effective renewable energy in Cape Verde and we aim to build upon this first investment with future growth in the sector on the African continent,” says Lars Reno Jakobsen, Senior Partner at A.P. Moller Capital.
"This investment in Eranove fits well with our strategy for The Africa Infrastructure Fund, namely, to support sustainable development on the African continent. Supplying reliable and cost-effective energy with low carbon emissions, for corporations and households is a necessity for further development in the continent," concludes Jens Thomassen, Partner at A.P. Moller Capital.
We seek to measure the ESG impacts of our investments, and social as well as environmental returns are pursued through carefully structured ESG governance frameworks at all levels of our organisation and at all stages of the investment process. Learn more in our ESG Report 2020.
Lumika will develop a portfolio of cost efficient, renewable energy solutions for commercial and industrial customers in Africa. As well as design, build and finance renewable based energy solutions for commercial and industrial customers in Africa through, among others, the installation of solar panels supplying green energy and providing software that creates transparency in terms of energy consumption. These solutions will lower the high cost of energy, reduce the reliance on fossil energy sources and in the end help African businesses to become more cost competitive and lower their impact on the environment by lowering their carbon footprint.
Holding Marocaine Commerciale et Financiere (“HOLMARCOM”) will retain 51% ownership of MCM. MCM has, for more than a decade, provided handling and storage services for grain bulk cargoes at the ports of Casablanca and Jorf Lasfar. The company handles nearly half of all grain bulk imports each year, contributing to an efficient logistics chain for key food supplies in Morocco.
The acquisition of the entire issued share capital of Iberafrica, one of Kenya’s leading IPPs, is part of A.P. Moller Capital’s efforts to invest in infrastructure assets including power and energy in Africa. The acquisition provides A.P. Moller Capital with an effective platform to advance its investment commitments in Kenya. A.P. Moller Capital is planning to invest further in greenfield and brownfield power and energy infrastructure assets in Kenya.
Through the Africa Infrastructure Fund, A.P. Moller Capital is making a sizable investment in a Ports and Logistics platform in West Africa. The platform is an infrastructure ecosystem of ports, trucking, warehouses and rail services, which facilitates effective trade and creates a foundation for local growth. At the outset, the focus will be on investing in and expanding the ecosystem.
Nigeria, Africa’s largest economy and home to Africa’s largest population, has significant power supply challenges. About 55% of the population has no access to electricity, and the biggest hindrance to business in Nigeria is electricity constraints.
The investers include PKA, PensionDanmark, Lægernes Pension, PFA, Danica Pension, SEB Pension och Försäkring, Lærernes Pension, and A.P. Moller Holding. With total commitments in line with the ambition for the Africa Infrastructure Fund, A.P. Moller Capital will therefore conclude the fundraising period in the next few months, after finalising ongoing dialogues, with a few remaining potential investors.
CDC and A.P. Moller Capital wishes to thank the management team of CEC, its shareholders, and the various Zambian governmental representatives and agencies who have supported the transaction. A.P. Moller Capital will continue to look for opportunities to expand its portfolio of investments in Zambia and other African countries in the future.
Kim Fejfer, Managing Partner and CEO, A.P. Moller Capital: “We are pleased and proud to announce that six months after the announcement of our Africa Infrastructure Fund, we have received total commitments of USD 865m from leading investors in Denmark and Sweden. With Danica, Danske Invest and SEB on board, we have increased our capacity to support a sustainable development in Africa through infrastructure investments.”
CEC is a leading Zambian power transmission, distribution and generation company and a major developer of energy infrastructure in Zambia. CEC owns, operates and maintains power transmission as well as generation assets and supplies electricity to customers in Zambia.
On 9 August 2017, A.P. Moller Capital launched The Africa Infrastructure Fund. The Fund will focus on African infrastructure investments – investments that will support sustainable economic growth in the region and deliver attractive returns to its investors. PFA Pension has committed USD 100 million, bringing total commitments from A.P. Moller Holding and the other anchor investors PKA, Pension Denmark and Lægernes Pension (The Medical Doctor’s Pension Fund) to USD 650 million.
The new fund will focus on investments in infrastructure in Africa to support sustainable economic growth in the region while delivering an attractive return to its investors. It will be managed by A.P. Moller Capital, and consists of a team lead by four partners, Kim Fejfer, Lars Reno Jakobsen, Jens Thomassen and Joe Nicklaus Nielsen.
A.P. Møller Capital P/S
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A.P. Møller Capital P/S is governed and regulated by the Danish Financial Supervisory Authority as an Alternative Investment Fund Manager. A.P. Møller Capital P/S (DIFC Branch) is regulated by the Dubai Financial Services Authority to provide advice and arrange deals in investments, to support the headquarter in Denmark. A.P. Moller Capital (Singapore) Pte. Ltd., a fully owned subsidiary of A.P. Møller Capital P/S, is exempt from licensing to provide advice on investments to its shareholder.
T: +971 55 588 6592
Peter Wernberg Nielsen
T: +45 20 44 93 77
T: +45 31 42 94 99
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