African and global institutional investors have signed the agreement on the new $500 million Africa50 Infrastructure Acceleration Fund, the first private vehicle infrastructure platform launched by Africa50.
The collaboration, which is described as an unprecedented milestone for Africa, brings together a diverse group of influential stakeholders from Africa comprising 17 African shareholders—including sovereign wealth funds, development finance institutions, banks, pension funds, asset managers, and retirement agencies and outside the region and two international institutional investors. Others are expected to join this first transaction.
Specifically, to affirm their commitment to the Fund, the shareholders signed subscription agreements and letters of intent to invest in the fund on Monday 3 July, during the Africa50 Infrastructure Forum and General Shareholders Meeting in the Togolese capital.
By its structure and terms, the fund is expected to catalyse further investment flows to the development of critical infrastructure in Sub-Saharan African (SSA) countries, including energy, transportation, telecommunications, and water, among other areas.
Speaking at the signing event, African Development Bank (AfDB) President and chairperson of the Africa50 board, Dr. Akinwumi Adesina said: “This is impressive and a first for 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.”
The bank is investing $20 million in equity in the Africa50 Infrastructure Acceleration Fund and the other investors are the International Finance Corporation (IFC) , the Nigeria Sovereign Investment Authority, the Arab Bank for Economic Development in Africa, the African Development Bank, CDC Sénégal, CDC Benin, CNSS Togo, CDG Invest, and Attijariwafa Bank of Morocco.
In his remarks at the event, the Nigeria Sovereign Wealth Fund’s Chief Executive Officer/Managing Director, Mr. Aminu Umar-Sadiq, said his agency’s priority focus on sustainable infrastructure was consistent with its vision to contribute positively to Africa’s economic growth and development, including investing profitably, responsibly, and sustainably.
He said: “The Nigeria Sovereign Wealth Fund has a clear mandate to bring development to Nigeria, and by extension the continent, and our investment in the Africa50 Infrastructure Acceleration Fund is an opportunity to increase our development impact in Africa while generating attractive financial returns.”
Commenting on the deal, the CEO of Arab Bank for Economic Development in Africa, Dr. Sidi Ould Tah, said: “Africa is a region with tremendous potential and a key priority for us, so we are delighted to join a credible partner like Africa50 in this groundbreaking partnership to scale up infrastructure development on the continent.”
This is even as the Africa50’s CEO, Alain Ebobissé, explained that securing commitments from such prominent African institutional investors marked the beginning of a new era of collaboration and investment in Africa’s infrastructure sector.
Ebobissé clarified: “This African-led initiative is a powerful demonstration of our shared vision to transform Africa’s infrastructure landscape. Together, we will catalyze African financial resources to lay the foundations for a better future, one that drives prosperity, job creation, and sustainable development for all Africans.”
The Africa50 Infrastructure Acceleration Fund is a 12-year closed-end infrastructure private equity fund that mobilizes large and long-term institutional capital from African and international institutions. The fund will make equity and quasi-equity investments—primarily taking majority stakes—in infrastructure projects across Africa.
