The Africa50 Group, an initiative of African governments and the African Development Bank (AfDB) to boost infrastructure investment on the continent, has received a $20 million equity injection from the AfDB.
The funds will go to the Africa50 Infrastructure Acceleration Fund I, a private equity fund that aims to raise up to $500 million from private and institutional investors for infrastructure projects in key sectors such as power, energy, digital and social infrastructure, transportation, logistics, and water and sanitation.
The fund will invest in both private sector and PPP projects, leveraging Africa50’s expertise in project development and financing. The AfDB’s investment will help attract more private capital into African infrastructure, which faces an annual funding gap of $68-108 billion.
The investment is also aligned with the AfDB’s High Five objectives of lighting up and powering Africa, feeding Africa, industrializing Africa, integrating Africa and improving the quality of life for the people of Africa.
The AfDB’s Director for Industrial and Trade Development, Abdu Mukhtar, said that the investment demonstrated the strategic importance of investing in infrastructure sectors that can close Africa’s infrastructure gap.
He added that the investment will support Africa50 to mobilize private capital through a fund structure that is familiar and appealing to private investors.
Wale Shonibare, AfDB’s Director for Energy Financial Solutions, Policy and Regulations, said that the investment reinforced the AfDB’s existing partnerships with Africa50 on initiatives such as the African Sovereign Investors Forum and the Alliance for Green Infrastructure in Africa.