In a historic move for African investment, Africa50 Group, the pan-African infrastructure investment platform, has officially closed the first round of its Africa50 Infrastructure Acceleration Fund (Africa50-IAF), raising an impressive $222.5 million in commitments.
A groundbreaking aspect of this achievement is the participation of 16 African institutional investors, marking a first for the continent. This diverse group includes sovereign wealth funds, pension funds, social security funds, insurance companies, banks, and Development Finance Institutions (DFIs). The notable inclusion of institutions such as the African Development Bank (AfDB) and the International Finance Corporation (IFC) emphasizes the regional commitment to fostering transformative change across Africa.
Africa50-IAF, a 12-year closed-ended infrastructure private equity fund, aims to invest in assets that generate transformative impact, job creation, and drive Africa’s green industrial revolution. By mobilizing significant and long-term institutional capital from both African and international investors, the fund seeks to deliver sustained growth and attractive risk-adjusted returns. It will achieve this by investing in diversified and sustainable infrastructure sectors across the African continent.
The successful first close of the fund is a crucial step toward capitalizing on Africa’s infrastructure opportunities and promoting sustainable development throughout the region. Key highlights of this achievement include:
– Total Commitments: The fund has secured a substantial $222.5 million from a diverse group of African institutional investors, in addition to contributions from a global investor.
– Prominent Backing: The participation of well-known African institutions underscores a strong commitment to the continent’s self-reliance and the potential of Africa50-IAF to catalyze infrastructure investment, fostering economic growth.
– Global Recognition: The involvement of a leading international institutional investor reflects the global acknowledgment of African infrastructure as an emerging asset class.
The raised capital will be strategically deployed into a pipeline of transformative infrastructure projects, spanning power and energy, transportation and logistics, water and sanitation, as well as digital and social infrastructure. Vincent Le Guennou, leading the fund with support from a team of seasoned private equity practitioners, expressed excitement about the achievement.
Alain Ebobissé, CEO of Africa50 Group, highlighted the significance of the first close, stating, “This achievement is a testament to the increasing role that African institutional investors are playing in financing the real economy and being at the forefront of unlocking Africa’s potential.”
Vincent Le Guennou, CEO of Africa50 Infrastructure Acceleration Fund, added, “The successful first close is a significant milestone, and we are grateful for the trust and commitment of our investors. 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.”
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.
By: Delino Gayweh
Serrari Financial Analyst
January 10, 2024
