The Board of Directors of the African Development Bank (AfDB) Group, has approved an equity investment of $20 million to mobilise private capital for infrastructure development across the continent.
The fund, according to the Bank in a statement, is part of Africa’s 50 Infrastructure Acceleration Fund I. The Fund is a pan-African infrastructure private equity fund that is mobilising up to $500 million for investment. It is also meant to ensure value creation in strategic infrastructure sectors which include power, energy, digital and social infrastructure, transportation, logistics, and water and sanitation.
According to the statement, the fund is sponsored by Africa50, an infrastructure investment platform established by governments and the bank.
The AfDB’s Director for the Industrial and Trade Development Department, Abdu Mukhtar, said the Bank’s investment in the Fund underlined its strategic nature.
“Africa50 brings infrastructure project development and financing under one umbrella. It has a strong track record of investments in the private sector and of projects undertaken under the Public Private-Partnership (PPP) framework.
“The mobilisation of private capital is critical to closing the infrastructure financing gap in Africa.
The approval, Mukhtar said, is an indication that the Bank prioritises investment in strategic infrastructure sectors that will ensure the continents’ bridges its infrastructure financing gap.
The AfDB’s Director for Energy Financial Solutions, Policy and Regulations, Wale Shonibare, said the Bank’s support for the Africa50 Infrastructure Acceleration Fund I aligned with its High Five objectives.
“It also strengthens the Bank’s already existing partnerships with the Africa50 Group on initiatives such as the African Sovereign Investors Forum and the Alliance for Green Infrastructure in Africa,” Shonibare added.
The Chief Executive Officer (CEO) of the Africa50 Group, Alain Ebobissé, said: “We are highly appreciative of the AfDB’s support for the Africa50 Infrastructure Acceleration Fund I.
Ebobissé said the fund is projected to create 3,278 full-time equivalent jobs over the period 2023-2035, including 1,676 jobs for women.
“By leveraging private capital for infrastructure investment, the Africa50 Infrastructure Acceleration Fund I can help create jobs, strengthen healthcare access, and improve education access through digital technologies.
