Casablanca, January 9, 2024 – Africa50 Group, the pan-African infrastructure investment platform, has achieved a significant milestone with the successful first close of the Africa50 Infrastructure Acceleration Fund (Africa50-IAF) on December 29, 2023. The fund secured an impressive $222.5 million in commitments, marking a historic moment as 16 African institutional investors, including sovereign wealth funds, pension funds, social security funds, insurance companies, banks, and Development Finance Institutions (DFIs), rallied together to support the initiative.
This landmark event underscores the commitment of regional stakeholders to drive transformative change across the continent. Notable participants in the first close include the African Development Bank (AfDB) and the International Finance Corporation (IFC).
Africa50-IAF, a 12-year closed-ended infrastructure private equity fund, aims to invest in projects that unlock transformative impact, create jobs, and accelerate Africa’s green industrial revolution. With the mobilization of large-scale and long-term institutional capital from both African and international investors, the fund seeks to deliver long-term growth and attractive risk-adjusted returns by investing in diversified and sustainable infrastructure sectors across Africa.
The first close of the fund represents a significant stride towards capitalizing on Africa’s vast infrastructure opportunities and fostering sustainable development. Key highlights of the first close include the successful securing of $222.5 million from a diverse group of African institutional investors, along with the participation of a leading international institutional investor, highlighting global recognition of African infrastructure as a rising asset class.
This capital injection will be directed towards a pipeline of transformative infrastructure projects spanning power and energy, transportation and logistics, water and sanitation, and digital and social infrastructure. Vincent Le Guennou, CEO of Africa50 Infrastructure Acceleration Fund, expressed his enthusiasm, stating, “The fund is well-positioned to make a lasting impact, accelerating the development of key infrastructure projects that will benefit communities and economies across Africa.”
Alain Ebobissé, CEO of Africa50 Group, emphasized the increasing role of African institutional investors in financing the real economy, saying, “The Africa50-IAF is the first of a suite of new investment vehicles and instruments that the Africa50 Group plans to raise as we seek to mobilize further private sector capital from within Africa and globally into African infrastructure.”
The Africa50 Infrastructure Acceleration Fund is poised to play a vital role in addressing Africa’s infrastructure deficit and promoting inclusive and sustainable development. The fund’s target final close is set at $500 million.