(Bloomberg) -- Z Capital Group and the Nigeria Sovereign Investment Authority agreed to establish a fund for infrastructure investments in Africa.

“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,” James Zenni, founder and chief executive officer of New York-based ZCG, said in an emailed statement. 

ZCG and NSIA said they plan to make investments in equity, debt and other blended financial instruments across sectors including health care, digital and social infrastructure, renewable energy and climate-smart agriculture. Zenni said the venture is aiming to raise $1 billion to $2 billion.

The joint venture with NSIA, which manages Nigeria’s sovereign wealth fund, will seek to invest in assets that “drive economic development throughout the continent,” Zenni said. 

Aminu Umar-Sadiq, NSIA’s CEO, said the venture will focus on backing climate-adaptive infrastructure “to meet the needs of current and future generations of Africans.” 

NSIA already invests in infrastructure through vehicles including the Nigeria Infrastructure Fund, which seeks to develop assets including motorways as well as projects in health care, power and agriculture, its website shows. 

Since taking office in May, Nigerian President Bola Tinubu has been on a drive to revive one of Africa’s biggest economies after years of economic stagnation. He has ended costly fuel subsidies, eased foreign-exchange controls, begun overhauling Nigeria’s chronically inadequate power sector and declared a state of emergency to improve food security threatened by surging inflation.

--With assistance from Emele Onu.

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