Africa50 launches new fund to catalyze investment flows in Africa

AFRICA Africa50, an investment bank for infrastructure in Africa, has launched Africa50 Infrastructure Acceleration Fund, a new fund aimed at catalyzing further investment flows into African infrastructure.

The Fund is targeting US$500 million in multiple closings. The Fund is a result of a long-haul effort by Africa50 to mobilize further capital to help bridge Africa’s infrastructure financing gap.

The Fund’s mandate is to deliver attractive risk-adjusted returns for institutional investors looking for exposure to African infrastructure assets, while playing a critical role in financing medium and large-scale infrastructure projects in Africa

“Sponsoring the Africa50 Infrastructure Acceleration Fund is a critical pillar of Africa50’s capital mobilization strategy,” Alain Ebobissé, CEO of Africa50, said.

“It will enable us to tap into a different pool of investors as well as long-term savings to increase Africa’s infrastructure investment capabilities. Attracting more private sector capital is key to relieving already-constrained public budgets and contributing to the continent’s growth and post-pandemic recovery.”

While the Fund will originate its own investment opportunities and make its investment decisions independently, it is also expected to explore co-investment opportunities with Africa50.

It will leverage Africa50’s capabilities in key areas such as deal flow generation, project development and project financing, as well as Africa50’s solid networks on the continent and globally, and strong African government relationships.

The Fund intends to invest in power, transport, ICT, midstream gas, health and education sectors.

Meanwhile, Africa50 has named African private equity executive, Vincent Le Guennou, to lead the new entity.

“I am delighted to welcome Vincent as the CEO of this new Africa50-backed fund. He brings international stature and considerable experience in structuring transformational private equity deals across Africa,” Ebobissé added.

“His strategic results driven leadership and impressive record as an innovative thinker will be strong assets that underpin the success of the Fund.”

Africa50 was established by African governments and the African Development Bank to help bridge Africa’s infrastructure funding gap by facilitating project development, mobilizing public and private sector finance, and investing in infrastructure on the continent.

Africa50 focuses on medium- to large-scale projects that have a significant development impact and that provide an appropriate risk-adjusted return to investors.

“Having devoted my professional life to investing in Africa’s private sector, I have seen firsthand the need for improved infrastructure to support business competitiveness and accelerate growth,” Le Guennou added.

Infrastructure is an asset class that I know well and have invested in over the years. I am pleased to join the Africa50 Group to lead this new infrastructure fund at such a crucial time in our continent’s development.

“I am excited by the opportunity to build a successful investment vehicle backed by a strong African investor with the goal to deliver attractive returns and excellent development impact.”

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.