African and Global Institutional Investors Subscribe to New $500 Million Infrastructure Fund | African Development Bank Group

Prominent African and global institutional investors have joined the new $500 million Africa50 Infrastructure Acceleration Fund – a move described as an unprecedented milestone for Africa. The fund is the first private vehicle infrastructure platform launched by Africa50.

The partnership brings together a diverse group of influential stakeholders from Africa and beyond. It consists of 17 African shareholders – including sovereign wealth funds, development finance institutions, banks, pension funds, asset managers and pension funds – and two international institutional investors. Other entities are expected to join this initial transaction.

To confirm their interest, shareholders signed subscription agreements and letters of intent to invest in the fund on Monday 3 July at the Africa50 Infrastructure Forum and General Shareholders’ Meeting in the Togolese capital.

The fund will catalyze further investment flows for the development of critical infrastructure on the African continent, including energy, transport, telecommunications and water.

Dr. Speaking at the signing event, Akinwumi Adesina, President of the African Development Bank and Chair of the Africa50 Board, said: “This is impressive and a first for 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 Africa50 Infrastructure Acceleration Fund.

Other investors include the International Finance Corporation, the Nigeria Sovereign Investment Authority, the Arab Bank for Economic Development in Africa, the West African Development Bank, CDC Senegal, CDC Benin, CNSS Togo, CDG Invest and Attijariwafa Bank of Morocco.

The chief executive officer and managing director of Nigeria Sovereign Wealth Fund, Aminu Umar-Sadiq, said his agency’s focus on sustainable infrastructure was consistent with its vision to positively contribute to Africa’s economic growth and development, including profitably, responsible and sustainable investment.

Umar-Sadiq 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 providing attractive financial returns.”

Dr. Sidi Ould Tah, CEO of the Arab Bank for Economic Development in Africa, said: “Africa is a region of enormous potential and a top priority for us, so we are delighted to be joining a credible partner like Africa50 in this pioneering partnership to scale up infrastructure development. on the mainland.”

Africa50 CEO Alain Ebobissé said securing commitments from such prominent African institutional investors marks the beginning of a new era of collaboration and investment in the African infrastructure sector.

Ebobissé said: “This Africa-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.

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