In a groundbreaking development for Africa, the Africa50 Infrastructure Acceleration Fund has secured commitments from prominent African and global institutional investors, amounting to a staggering $500 million.
This marks an unprecedented milestone for the continent, as it represents the first private vehicle infrastructure platform launched by Africa50.
The collaboration brings together a diverse group of influential stakeholders, including 17 African shareholders comprising sovereign wealth funds, development finance institutions, banks, pension funds, asset managers, and retirement agencies, alongside two international institutional investors.
Moreover, it is anticipated that additional entities will join this monumental initiative.
The shareholders have demonstrated their commitment by signing subscription agreements and letters of intent to invest in the fund.
This momentous event took place on Monday, July 3rd, during the Africa50 Infrastructure Forum and General Shareholders Meeting held in Lomé, the capital of Togo.
The primary objective of the fund is to stimulate further investment in critical infrastructure across Africa, with a focus on sectors such as energy, transportation, telecommunications, and water, among others.
During the signing ceremony, Dr. Akinwumi Adesina, President of the African Development Bank and Chair of the Africa50 Board, expressed his admiration for the initiative, stating, “This is impressive and a first for Africa.
It is remarkable and unprecedented to have 17 African institutions participating in such a transforming initiative to invest in an African infrastructure fund.
With the Fund, we are positioning the Africa50 Group to play a lead role in helping to tap into the more than $98 trillion of global assets under management.”
The African Development Bank has committed $20 million in equity investment to the Africa50 Infrastructure Acceleration Fund. Other notable investors include the International Finance Corporation, the Nigeria Sovereign Investment Authority, the Arab Bank for Economic Development in Africa, the West African Development Bank, CDC Sénégal, CDC Benin, CNSS Togo, CDG Invest, and Attijariwafa Bank of Morocco.
Aminu Umar-Sadiq, the Chief Executive Officer and Managing Director of Nigeria Sovereign Wealth Fund, emphasized the agency’s commitment to sustainable infrastructure and its vision to contribute to Africa’s economic growth and development through profitable and responsible investments.
Umar-Sadiq stated, “Our investment in the Africa50 Infrastructure Acceleration Fund is an opportunity to increase our development impact in Africa while generating attractive financial returns.”
Dr. Sidi Ould Tah, CEO of the Arab Bank for Economic Development in Africa, highlighted Africa’s enormous potential and expressed his delight at partnering with Africa50 to scale up infrastructure development on the continent.
Tah remarked, “Africa is a region with tremendous potential and a key priority for us, so we are delighted to join a credible partner like Africa50 in this groundbreaking partnership to scale up infrastructure development on the continent.”
Alain Ebobissé, CEO of Africa50, believes that securing commitments from such prominent African institutional investors heralds a new era of collaboration and investment in Africa’s infrastructure sector. Ebobissé asserted, “This African-led initiative is a powerful demonstration of our shared vision to transform Africa’s infrastructure landscape.
Together, we will catalyze African financial resources to lay the foundations for a better future, one that drives prosperity, job creation, and sustainable development for all Africans.”
The Africa50 Infrastructure Acceleration Fund is a 12-year closed-end infrastructure private equity fund that aims to mobilize substantial and long-term institutional capital from African and international institutions.
The fund will primarily make equity and quasi-equity investments, with a focus on taking majority stakes in infrastructure projects across Africa.
This landmark initiative holds great promise for Africa’s future, as it seeks to bridge the infrastructure gap and drive economic growth and prosperity throughout the continent.
With the support of prominent investors, the Africa50 Infrastructure Acceleration Fund has the potential to create lasting positive change for Africa and its people.
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