Africa50's infrastructure PE fund reaches $222.5m first close

AFRICAN STOCKS AND FINANCEJanuary 12, 2024 at 12:57 AM UTC

TLDR

Africa50 Group's Africa50 Infrastructure Acceleration Fund (Africa50-IAF) has secured $222.5 million in commitments from 16 African institutional investors.
Participants in Africa50-IAF include sovereign wealth funds, pension funds, insurance companies, banks, and development finance institutions.
The fund aims to invest in infrastructure assets that will have a transformative impact, create jobs, and support Africa's green industrial revolution.

Africa50 Group, the pan-African infrastructure investment platform, has reached the initial closing of its Africa50 Infrastructure Acceleration Fund (Africa50–IAF), securing $222.5 million in commitments.

Participation in Africa50-IAF comes from 16 African institutional investors, comprising sovereign wealth funds, pension funds, social security funds, insurance companies, banks, and development finance institutions (DFIs), including the African Development Bank (AfDB) and the International Finance Corporation (IFC).

Designed as a 12-year closed-ended infrastructure private equity fund, Africa50-IAF aims to invest in infrastructure assets with the potential to generate transformative impact, foster job creation, and expedite Africa's green industrial revolution.

Key Takeaways

Africa presents a massive infrastructure investment opportunity with a current investment gap of over $150 billion per year. The continent is home to some of the fastest-growing economies in the world, with a combined GDP of $2.3 trillion and a population of 1.3 billion people. But only 60% of the population has access to basic electricity, among other infrastructure challenges. With funds like the AfDB-backed Africa50 Infrastructure Acceleration Fund I and a growing middle class, the continent’s infrastructure market is poised for substantial growth in the coming years.

Africa50

Infrastructure

Infrastructure Financing

IFC

AfDB

Africa50-IAF

DFIs

Private Equity