In a groundbreaking development, prominent African and global institutional investors have signed subscription agreements and letters of intent, paving the way for the first close of the Africa50 Infrastructure Acceleration Fund (IAF). The IAF, established to stimulate investment in critical infrastructure projects across Africa, has garnered support from a diverse group of influential stakeholders, including sovereign wealth funds, development finance institutions (DFIs), banks, pension funds, asset managers, retirement agencies, and an international institutional investor.
This historic collaboration, announced during Africa50’s Infra for Africa Forum on the sidelines of its General Shareholders Meeting, signifies a significant milestone for the continent. With 18 African institutions already on board and additional entities expected to join, mobilising such a substantial number of African institutional investors for an infrastructure fund is an unprecedented achievement. It demonstrates Africa’s determination to take charge of its own economic growth while forging global partnerships.
The Africa50 Infrastructure Acceleration Fund serves as a crucial vehicle to bridge the financing gap in Africa’s infrastructure landscape. The commitments made by the institutional investors will unlock transformative projects in sectors such as energy, transportation, telecommunications, and water, among others.
Akinwumi A. Adesina, President of the African Development Bank, spoke at the signing ceremony, stating, ‘I strongly believe that for African institutional investors, this is the time to change the investment narrative on Africa. It is remarkable and unprecedented to have 17 African institutions participating in such a transforming initiative to invest in an African infrastructure fund. With the Fund, we are positioning the Africa50 Group to play a lead role in helping to tap into the more than $$98 trillion of global assets under management.’
Aminu Umar-Sadiq, CEO and Managing Director of the Nigeria Sovereign Wealth Fund, emphasised the alignment between the fund’s vision and NSIA’s priority focus on sustainable infrastructure. He said, ‘The NSIA has a clear mandate to bring development to Nigeria and by extension, the continent at large, and our investment in the Africa50 Infrastructure Acceleration Fund is an opportunity to expand our development impact in Africa while generating attractive financial returns.’
Sidi Ould Tah, CEO of the Arab Bank for Economic Development in Africa (BADEA), also expressed their commitment to the fund, saying, ‘BADEA’s investments are meant to have meaningful impact in the economies of its partner countries across various sectors. Africa is a region with tremendous potential and a key priority for us, and we are therefore pleased to join a credible partner like Africa50 in this groundbreaking partnership to scale up infrastructure development on the continent.’
M. Serge Ekué, President of the West African Development Bank (BOAD), another investor in the Fund, highlighted the potential for economic development and job creation, saying, ‘BOAD is always keen on supporting initiatives that help drive prosperity for the continent and scale the impact of our investments. We believe this fund will support the right infrastructure projects the continent needs to create opportunities for its youth and spur economic development.’
Alain Ebobissé, CEO of Africa50, expressed his excitement about securing commitments from such prominent African institutional investors. He stated, ‘Securing commitments from such prominent African institutional investors marks the beginning of a new era of collaboration and investment in Africa’s infrastructure sector. This African-led initiative is a powerful testament to our collective vision of transforming Africa’s infrastructure landscape. Together, we will catalyse African financial resources to build the foundations for a brighter future, one that drives prosperity, job creation, and sustainable development for all Africans.’
The signing of these subscription agreements and letters of intent signals a major step forward for the Africa50 Infrastructure Acceleration Fund, setting the stage for increased investment in critical infrastructure projects that will contribute to Africa’s economic growth and development.
