African investors back Africa50 to accelerate sustainable infrastructure

ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, January 10 – Morocco-based Africa50 aims to spur critical infrastructure development in Africa with different funding mechanisms that help developers overcome financing hurdles, like project planning and development. Its newest vehicle, the Infrastructure Acceleration Fund, will make majority equity and quasi-equity investments in energy, transportation and logistics, water and sanitation, and digital and social infrastructure.

Africa50 has raised $222.5 million toward its $500 million goal, with backing from 16 African institutional investors. The African Development Bank and International Finance Corp. also backed the fund.

Electricity grids

The upgrade of Africa’s inadequate electricity transmission requires at least $45 billion in financing. Africa50 is developing a solar + transmission project with the government of Mozambique and a public-private transmission partnership in Kenya.

“It is time for the private sector to jump on the billions of dollars a year transmission infrastructure opportunity in Africa, and for governments to embrace private sector participation in the sector,” Africa50’s Alain Eboisse wrote on ImpactAlpha.

Africa50 believes its focus on green and sustainable projects, community benefits and responsible investing give it an advantage in a tough fundraising environment.

“With access to capital being highly competitive, the company aims to strategically leverage the fund’s ESG performance as a competitive differentiator,” the firm wrote.