Johannesburg, South Africa, January 11, 2024 —To support sustainable infrastructure development across Africa, IFC today announced a $20 million equity investment in the Africa50 Infrastructure Acceleration Fund (IAF Fund), which will invest in digital infrastructure, renewable power and energy, transportation, logistics, and water and sanitation projects.
The fund aims to invest in projects across Africa, where the private sector is playing an important role supporting infrastructure development. The fund's focus on the digital infrastructure and energy sectors aligns closely with several World Bank Group initiatives and IFC's strategy to support projects that deliver high development impact.
The fund's first close secured $222.5 million in commitments, including from 16 African institutional investors. The fund's final target close is $500 million.
We are thrilled to see such strong support from African institutional investors for the Africa50 Infrastructure Acceleration Fund," said Alain Ebobissé, CEO of Africa50 Group "This achievement is a testament to the increasing role that African institutional investors are playing in financing the real economy and unlocking Africa's potential. The Africa50-IAF is the first of a suite of new investment instruments that the Africa50 Group plans to raise as we seek to mobilize further private sector capital from Africa and globally into African infrastructure."
"Investing in infrastructure is essential for Africa's social and economic development. This partnership with IAF will help promote and mobilize much needed equity capital for projects that will have direct positive impacts on populations across Africa, including those that focus on climate mitigation," said Sarvesh Suri, IFC Regional Industry Director for Infrastructure and Natural Resources, Africa.
Africa currently faces significant infrastructure challenges. According to Africa's Pulse, a bi-annual World Bank publication, the continent lags behind in access to most types of infrastructure, including power, digital, roads, and water, impacting economic activity.
IFC's investment in IAF is expected to help mobilize more private financing for the fund. This includes attracting support from institutional investors, development finance institutions, as well as local and regional banks.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
Stay Connected with IFC on social media
About Africa50 Group
Africa50 is an infrastructure investment platform that contributes to Africa's growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact. Africa50 currently has 34 shareholders, comprised of 31 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib. For more information, visit: africa50.com
