Africa50 Group, the pan-African infrastructure investment platform, proudly announced the successful first close of the Africa50 Infrastructure Acceleration Fund (Africa50-IAF) on December 29th, 2023, amassing $222.5 million in commitments.
This achievement is marked by an African first, with participation from 16 African institutional investors, which include sovereign wealth funds, pension funds, social security funds, insurance companies, banks, and Development Finance Institutions (DFIs), showcasing the commitment of regional stakeholders to drive transformative change across the continent.
In a press statement available on its website, the organisation stated that among the noteworthy first close investors are the African Development Bank (AfDB) and the International Finance Corporation (IFC).
The 12-year closed-ended infrastructure private equity fund, Africa50-IAF, aims to invest in life-changing infrastructure assets that will create jobs and speed up Africa’s green industrial revolution.
Africa50-IAF also seeks to mobilise large-scale and long-term institutional capital from both African and international investors, focusing on diversified and sustainable infrastructure sectors across the continent.
The statement part read, “The first close of the Fund marks a significant step towards capitalising on Africa’s infrastructure opportunities and fostering sustainable development across the continent.”
Africa50-IAF presented some of the highlights from the first close, which include, “The fund has secured a total of $222.5 million from a diverse group of African institutional investors, plus a global investor.
“Backed by several prominent African institutions, the first close showcases a strong commitment to the continent’s self-reliance and the Africa50-IAF’s potential to catalyse infrastructure investment and drive economic growth on the continent.
“The participation of a leading international institutional investor reflects the global recognition of African infrastructure as a rising asset class.
“The capital raised will be deployed into a pipeline of transformative infrastructure projects spanning power and energy, transportation and logistics, water and sanitation, and digital and social infrastructure. The fund is led by Vincent Le Guennou and supported by a team of talented private equity practitioners with extensive Africa and international exposure.”
Alain Ebobisse, CEO of Africa50 Group, expressed excitement about the strong support from African institutional investors, highlighting the increasing role they play in financing the real economy.
Ebobisse said, “We are thrilled to see such strong support from African institutional investors for the Africa50 Infrastructure Acceleration Fund. This achievement is a testament to the increasing role that African institutional investors are playing in financing the real economy and being at the forefront of unlocking Africa’s potential.
“The Africa50-IAF is the first of a suite of new investment vehicles and instruments that the Africa50 Group plans to raise as we seek to mobilise further private sector capital from within Africa and globally into African infrastructure.”
Vincent Le Guennou, CEO of Africa50 Infrastructure Acceleration Fund, added that the successful first close is a significant milestone, positioning the fund to make a lasting impact on the development of key infrastructure projects across Africa.
Guennou said, “The successful first close is a significant milestone, and we are grateful for the trust and commitment of our investors. The fund is well-positioned to make a lasting impact, accelerating the development of key infrastructure projects that will benefit communities and economies across Africa.”
The Africa50 Infrastructure Acceleration Fund is expected to play a crucial role in addressing Africa’s infrastructure deficit, with a target final close of $500 million.