Bridging Africa’s infrastructure funding gap

Bridging Africa's infrastructure funding gap has been a longstanding challenge on the continent, with capital mobilization facing hurdles in the past. However, Africa50, a project development initiative established by African governments and the African Development Bank, is leading the way in changing this narrative. Through its acceleration fund, as part of the African Union's Agenda 2063, Africa50 is spearheading efforts to address Africa's infrastructure financing shortfall. In a recent exclusive interview with CNBC Africa, Tshepidi Moremong, Chief Operations Officer at Africa50, shed light on the organization's strategic initiatives and partnerships aimed at propelling green infrastructure development in Africa. The dialogue delved into the significance of the $175 million pledge towards a blended finance facility to drive the transition to net-zero emissions, in line with global climate goals. Moremong emphasized the pivotal role of early-stage project development in achieving bankable infrastructure projects, with a target of catalyzing $10 billion in private sector investments. The conversation further touched on the collaborative efforts of key stakeholders, including the African Development Bank, France, Germany, Japan, and other signatories, in mobilizing resources to fulfill the ambitious $300 billion annual infrastructure financing requirement. Notably, the interview highlighted the importance of equity capital in project financing and the role of philanthropic funding in de-risking clean energy projects to attract private sector participation.