The African Development Bank (AfDB) has launched New Africa Mining Fund’s second Africa-focused junior venture capital fund, NAMF II, in Johannesburg.

The NAMF II equity fund will invest in mining projects within the Southern African development community region (SADC).

The fund, which has achieved its first close for $73.6m, including AfDB’s $14.7m contribution, will have a total commitment of $111m.

NAMF II will focus on the upstream stages of the mining investment cycle over five years and will have a life of eight years.

The investments will facilitate growth and expansion in Greenfield projects across the SADC region and developing companies in the private sector, according to the AfDB.

New Africa Mining Fund principal Neil Gardyne said Africa is well endowed with the mineral resources that will grow in demand over the next two decades by emerging economies such as China and India.