Dhamana Guarantee Co. provides local currency credit guarantees to facilitate financing for sustainable infrastructure in East Africa. The Kenya-based company connects institutional capital from African pension funds, insurance companies and sovereign wealth funds to projects in transport, water, renewable energy and waste management infrastructure.
Dhamana raised $10 million in equity financing from the African Development Bank, and $4.6 million from Nairobi-based County Pension Fund Financial Services, FSD Africa and Cardano Development.
AfDB’s Solomon Quaynor says Dhamana can accelerate the mobilization of capital from Africa’s institutional investors and “reinforces the catalytic role and potential of credit enhancement companies in leveraging opportunities for infrastructure financing in local currency.”
Dhamana was founded by InfraCo Africa, a subsidiary of the Private Infrastructure Development Group, or PIDG, a private infrastructure financier focused on Africa and Asia. PIDG owns similar institutions in Nigeria (InfraCredit Nigeria) and Pakistan (InfraZamin Pakistan).
AfDB’s Solomon Quaynor says the bank will work with PIDG to seed more credit enhancement companies in Africa.
