- July 7, 2023
- Posted by: AITRC 2
- Categories: News, Blog
“Launch of the $500 Million Africa50 Infrastructure Acceleration Fund Signals Unprecedented Collaboration among African and Global Institutional Investors”
Africa has achieved a significant milestone with the introduction of the Africa50 Infrastructure Acceleration Fund, a private vehicle infrastructure platform spearheaded by Africa50. This groundbreaking initiative has garnered the participation of influential stakeholders from both Africa and beyond, uniting prominent African and global institutional investors.
The fund comprises a diverse group of shareholders, including 17 African entities such as sovereign wealth funds, development finance institutions, banks, pension funds, asset managers, and retirement agencies. Additionally, two international institutional investors have joined the consortium, with expectations of further entities joining in subsequent transactions.
To solidify their commitment, shareholders signed subscription agreements and letters of intent to invest in the fund on July 3, during the Africa50 Infrastructure Forum and General Shareholders Meeting held in Lome, the capital of Togo.
The Africa50 Infrastructure Acceleration Fund aims to unlock additional investment flows for critical infrastructure development across the African continent. Key sectors that will benefit from the fund’s investments include energy, transportation, telecommunications, water, and other vital areas.
During the signing event, Mr. Akinwumi Adesina, President of the African Development Bank (AfDB) and Chair of the Africa50 Board, expressed his admiration for this remarkable and unprecedented achievement, emphasizing the significance of having 17 African institutions participate in an African infrastructure fund. He stated that the fund positions the Africa50 Group as a leading player in leveraging the more than $98 trillion of global assets under management.
Mr. Aminu Umar-Sadiq, CEO and Managing Director of the Nigeria Sovereign Investment Authority (NSIA), reaffirmed his agency’s dedication to sustainable infrastructure and its vision to contribute to Africa’s economic growth and development. He noted that their investment in the Africa50 Infrastructure Acceleration Fund aligns with their mandate to foster development in Nigeria and the continent, while also generating attractive financial returns.
Mr. Sidi Ould Tah, CEO of the Arab Bank for Economic Development in Africa, expressed delight in partnering with Africa50, emphasizing their commitment to Africa and their excitement to scale up infrastructure development on the continent.
Mr. Alain Ebobissé, CEO of Africa50, highlighted the significance of securing commitments from influential African institutional investors, marking the beginning of a new era of collaboration and investment in Africa’s infrastructure sector. He emphasized the shared vision to transform Africa’s infrastructure landscape and the collective effort to leverage African financial resources for a prosperous future characterized by job creation and sustainable development.
In addition to the AfDB’s $20 million equity investment, other investors such as the International Finance Corporation (IFC), the Nigeria Sovereign Investment Authority (NSIA), 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 are expected to make significant contributions to the Africa50 Infrastructure Acceleration Fund.
This collaboration among prominent African and global institutional investors paves the way for a new era of investment and cooperation in Africa’s infrastructure sector, positioning the continent for accelerated development and shared prosperity.
