Africa50 invests in infrastructure worth more than USD 6.6 billion over six years | African Development Bank Group

In just six years, Africa50 has invested in critical infrastructure worth more than $6.6 billion, said Dr. Akinwumi Adesina, president of the African Development Bank Group, on Monday at the Africa50 Infra Forum and General Meeting of Shareholders in Lomé, the capital of Togo. The event was attended by Togolese President Faure Gnassingbé.

Africa50 is an investment platform established by African governments and the African Development Bank to mobilize finance for mega-infrastructure projects with significant development impact. Adesina is Chair of the Board of Directors of Africa50.

Prominent African and global institutional investors attending the meeting signed a subscription and letters of intent to allocate funds to the $500 million African Infrastructure Acceleration Fund – the first private vehicle infrastructure platform launched by Africa50.

The fund will catalyze further investment flows to invest in the development of critical infrastructure on the African continent.

President Gnassingbé said: “There is a huge need for infrastructure across the continent, and this is indeed a prerequisite for development. Without roads, bridges, airports, hospitals, schools, power, communication networks and water supply, development in Africa is indeed impossible.”

Gnassingbé said infrastructure issues are at the heart of his country’s development roadmap.

“Togo has assets, but to exploit them we need to invest in infrastructure,” said the Togolese president. He added: “The public sector finances more than 90% of infrastructure investments, but government spending will not be enough… the involvement of the private sector is essential.”

He stressed that projects must be financeable in order to attract private investors. “Without a stable and consistent regulatory environment, it will not be possible to attract private capital,” he stressed.

Adesina said Africa50 was quickly playing a strategic role in closing the infrastructure funding gap in Africa, from energy to transport and from logistics to digital infrastructure.

He said: “Africa50 is doing a great job as an institution, developing projects for bankability and funding projects. At the heart of our work is to help close Africa’s annual infrastructure funding shortfall of $68 to $108 billion.”

Alain Ebobissé, CEO of Africa50, said his institution was ready to take on the challenge of creating the infrastructure needed to grow the African continent.

“For example, with the support of the African Development Bank, Africa50 has developed the first asset recycling program in Africa,” said Ebobissé. “And today we are pleased to welcome Togo, Gambia and Zimbabwe as the first countries to join this program with iconic assets.”

Asset recycling is an innovative initiative for governments to monetize existing infrastructure assets through a concession to the private sector, reinvesting funds received in other priority projects.

Ebobissé explained that Africa50’s investment over six years covered 21 national and regional infrastructure projects in 22 countries.

“We understand the expectations of the African people. Therefore, we must act with a real sense of urgency.”

Speaking of funding for Africa’s development needs, Adesina said that the reallocation of International Monetary Fund’s Special Drawing Rights (SDRs) through the African Development Bank would mean much more resources to support all regional development banks in Africa and Africa50.

He explained that these funds would free up additional resources to fund climate change mitigation and adaptation, infrastructure for agriculture, transportation, digital technology, airports, water and sanitation, education and health. He added that the added funds would support African countries such as Togo, where the African Development Bank has invested heavily and is the largest development partner supporting the country’s agricultural sector.

The African Development Bank invested more than $32 million to support inclusive growth in the sector, reducing imports of key food commodities such as rice, maize and soybeans.

Adesina later said at the Africa50 Infrastructure Acceleration Fund signing event, “Now is the time to change the investment narrative across Africa. It is remarkable and unprecedented that 17 African institutions are participating in such a transformative initiative to invest in an African infrastructure fund. With the fund, we position the Africa50 Group to play a leading role in helping tap into the more than $98 trillion in global assets under management.”

The African Development Bank is investing $20 million of equity in the African Infrastructure Acceleration Fund.

There is a lot that can be done to close the infrastructure gap in Africa, Adesina told the forum. “Since most of Africa’s infrastructure has yet to be built, there is an excellent opportunity to build this green and green the existing infrastructure.”

“Africa’s future is green, so let’s green all of Africa’s infrastructure. Together we will make Africa the center of green infrastructure in the world. Africa50 and the African Development Bank and our partners will make this happen,” he concluded.

Africa50 has received support from all over Africa and today has 31 African countries as shareholders and 3 African institutional investors.

Click here to view Dr. Read Adesina.

Watch a replay of the speech here.

Click here for photos.