Africa50 Infrastructure Acceleration Fund secures $222.5mn in 1st close

Africa50, a pan-African infrastructure investment platform, has successfully closed the first round of funding for its Infrastructure Acceleration Fund, raising an impressive $222.5 million. The CEO of Africa50, Alain Ebobissé, views this achievement as a strong vote of confidence from both African and international investors in the potential to mobilize capital for African infrastructure projects. With the capital deployment set to begin this year, Africa50 aims to secure a second round of funding within the same year. The significance of this achievement not only lies in the financial aspect but also in the promise of generating attractive risk-adjusted returns while promoting sustainable development and economic growth across the continent. The active participation of 16 African institutional investors in the African Infrastructure Fund signifies a crucial commitment to self-reliance and belief in Africa's potential. This involvement serves as a powerful message that African institutions are ready to invest within the continent, fostering transformative change and development from within. Additionally, the presence of reputable African institutions as anchor investors plays a vital role in mitigating country risks, thereby providing assurance to potential international investors for subsequent funding rounds. The fund is strategically targeting investments in power and energy, transportation and logistics, water and sanitation, as well as digital and social infrastructure sectors. In alignment with the Paris Climate Agreement, Africa50 intends to incorporate a significant portion of climate-friendly assets in its portfolio while limiting exposure to fossil fuels infrastructure. The diverse range of sectors aimed for investment underscores the fund's commitment to supporting sustainable and impactful projects on the continent. Alain Ebobissé emphasizes the urgent need to address Africa's vast infrastructure gap, with estimates suggesting a requirement of $1.4 trillion in investments over the next decade to meet climate targets. Recognizing that government resources alone will not suffice, Africa50, alongside other partners, aims to tap into private sector funds to bridge this gap. The recent success in mobilizing capital from African and global investors underscores the importance of collaborative efforts to complement government funding with private investments for infrastructure development. The first close of the Infrastructure Acceleration Fund saw participation from key investors such as the African Development Bank, the International Finance Corporation (IFC), the West African Development Bank, the Arab Bank for Economic Development in Africa, as well as sovereign wealth funds including Nigeria's NSIA and Angola's Fondo Suberano. Expectations for a second round of funding are high, with Africa50 targeting a final close of $500 million by the end of the year. The platform is determined to showcase the bankability and profitability of African infrastructure assets, aiming to attract both African and global investors to contribute towards closing the infrastructure gap on the continent. In an exclusive interview with CNBC Africa, Alain Ebobissé highlighted the importance of this milestone in mobilizing capital for African infrastructure projects. The successful first close of the Infrastructure Acceleration Fund marks a significant step towards addressing Africa's infrastructure deficit and driving sustainable development across the continent.