Sunday, February 25, 2024

IFC Pledges $20 Million to Africa50 Fund for Sustainable Infrastructure Growth in Africa – Tech In Africa

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The International Finance Corporation (IFC) has invested $20 million in equity to the Africa50 Infrastructure Acceleration Fund (IAF Fund). This fund is set to channel investments into several critical sectors, including digital infrastructure, renewable energy, transportation, logistics, and water and sanitation projects throughout Africa. It aims to leverage private sector participation in bolstering infrastructure development across the continent. With a keen focus on digital and energy sectors, the initiative harmonizes with numerous World Bank Group efforts. It mirrors the IFC’s objective to back projects with significant developmental outcomes.

The Africa50 Infrastructure Acceleration Fund has completed its initial funding round, garnering $222.5 million in commitments, with contributions from 16 African institutional investors. This marks a significant milestone to reach a final fund size of $500 million.

Alain Ebobissé, the CEO of Africa50 Group, expressed his enthusiasm over the robust backing from African institutional investors. He highlighted this accomplishment as evidence of the growing contribution of African institutional investors to the real economy’s financing, facilitating the unlocking of Africa’s potential. The Africa50-IAF stands as the inaugural initiative among a series of new investment tools that Africa50 Group intends to introduce, aimed at attracting additional private sector investment from both African and international sources into the continent’s infrastructure sector.

“Sarvesh Suri, the International Finance Corporation’s (IFC) Regional Industry Director for Infrastructure and Natural Resources in Africa, highlighted the critical role of investing in infrastructure for the continent’s socio-economic progress. He emphasized that the partnership with the Infrastructure Africa Fund (IAF) is poised to generate vital equity capital for projects with significant positive effects on African communities, including initiatives aimed at climate change mitigation.

The continent of Africa currently grapples with substantial infrastructure deficits. As reported by Africa’s Pulse, the World Bank’s semiannual analysis, Africa trails in providing access to essential services such as electricity, internet connectivity, road networks, and water supply, which hinders economic development.

The IFC’s investment in the IAF is anticipated to catalyze additional private sector investment into the fund, drawing interest from institutional investors, development finance entities, and local and regional banking institutions.”

 

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