- Africa50, a pan-continental infrastructure investor, is setting up the first region-wide investment vehicle dedicated to off-grid power companies and plans a $500 million fund to invest in climate-friendly projects.
- Separately, Casablanca-based Africa50 is setting up a $200 million fund to invest in companies providing so-called distributed renewable energy such as solar-powered mini-grids and home systems.
The African Development Bank established Africa50 back in 2012 to help bridge Africa’s infrastructure funding gap by facilitating project development, mobilizing public and private sector finance, and investing in infrastructure on the continent. Africa50 focuses on medium- to large-scale projects that have development impact and offer an appropriate risk-adjusted return to investors. Bringing project development and financing together in one platform, Africa50 seeks to provide support at every stage of the project cycle.
The new funds, whose shareholders include the African Development Bank and Morocco’s central bank, come amid a drive by regional governments to boost access to electricity and shield against the impact of adverse weather caused by climate change.
The Alliance for Green Infrastructure in Africa fund will be the first of the new funds. It will comprise a $400 million component for project development, another $100 million for project preparation, and will target sectors ranging from renewable energy to transport that limits greenhouse-gas emissions.
Separately, Casablanca-based Africa50 is setting up a $200 million fund to invest in companies providing so-called distributed renewable energy such as solar-powered mini-grids and home systems. The International Solar Alliance will sponsor the new fund, known as the Africa Solar Facility.
Africa50 is also planning a Nigeria-focused fund for distributed renewable energy with the Nigerian Sovereign Investment Authority and the United Nations-backed Sustainable Energy For All, though the partners have yet to decide its size.
Africa50 currently runs three facilities namely, the Africa50-Project Development, Africa50-Project Finance and the Africa50 Infrastructure Acceleration Fund.
Author: Bryan Groenendaal
