Johannesburg, South Africa, January 11, 2024 —To support sustainable infrastructure development across Africa, IFC today announced a $20 million equity investment in the Africa 50 Infrastructure Acceleration Fund (IAF Fund). The fund will invest in digital infrastructure, renewable power and energy, transport, logistics, water and sanitation projects.
The fund aims to invest in projects across Africa where the private sector plays a key role in supporting infrastructure development. The fund focuses on digital infrastructure and energy, and is closely aligned with several World Bank Group initiatives and IFC’s strategy to support high-impact projects.
The fund’s first close secured commitments of $222.5 million, including from 16 African institutional investors. The fund’s final goal is $500 million.
“We are very pleased to see such strong support from African institutional investors for the Africa50 Infrastructure Acceleration Fund,” said Alain Ebobice, CEO of Africa50 Group. “This achievement is evidence of the growing role of African institutional investors in financing the real economy and unlocking Africa’s potential.” Africa50-IAF is the first in a series of new investment products that the African50 Group plans to procure, with the aim of further mobilizing private sector capital in Africa and around the world into African infrastructure. ”
“Investing in infrastructure is essential to Africa’s socio-economic development. This partnership with IAF will help facilitate and mobilize much-needed capital into projects that have a direct positive impact on people across Africa, including projects focused on climate change mitigation,” said Sarvesh Suri, IFC Infrastructure and Natural Resources Regional Industry Director for Africa.
Africa currently faces significant infrastructure challenges. According to Africa’s Pulse, published twice a year by the World Bank, the continent lags in access to most types of infrastructure, including electricity, digital, roads and water, impacting economic activity.
IFC’s investment in IAF is expected to further mobilize private capital into the Fund. This includes attracting support from local banks as well as institutional investors and development finance institutions.
About IFC
IFC, a member of the World Bank Group, is the largest global development agency focused on the private sector in emerging markets. We operate in more than 100 countries, leveraging our capital, expertise and influence to create markets and opportunities in developing countries. In FY2023, IFC committed a record $43.7 billion to private businesses and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and promote shared prosperity as economies grapple with the compounding effects of global crises. For more information, please visit www.ifc.org.
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About Africa50 Group
Africa50 is an infrastructure investment platform that develops and invests in highly financially viable projects, promotes public sector capital, and mobilizes private sector resources to deliver differentiated economic returns and impact and contribute to Africa’s growth. Africa50 currently has 34 shareholders comprising 31 African countries, the African Development Bank, the Central Bank of West African States (BCEAO) and Al Maghrib Bank. For more information, visit africa50.com.
