Africa: Africa50 aims for at least $20 billion in infrastructure projects over five years

According to data provided to Reuters, the institution has so far co-invested in 36 projects representing approximately 9 billion dollars, in electricity, transportation, logistics, digital infrastructure, and other sectors. Africa50 has committed around 500 million dollars of equity in these operations.

Tshepidi Moremong believes that the portfolio can now double, or even triple in value. The stated goal is to reach at least 20 billion dollars in co-invested projects over five years, with priority given to areas where financing needs remain the greatest, particularly electricity production and transmission.

This increase in activity comes as infrastructure needs remain substantial in Africa, particularly in energy, transport corridors, and digital networks. Africa50, created by African states and the African Development Bank, has the mandate to transform these needs into bankable projects capable of attracting public and private capital.

The group has strengthened several of its investment vehicles in recent months. At the Infra for Africa forum held in August in Dar es Salaam, British International Investment committed $20 million to the Africa50 Infrastructure Acceleration Fund, bringing the fund’s commitments to approximately $330 million. Africa50 also announced new partnerships in energy, electric transmission, and healthcare in Tanzania.

Electricity and major networks at the center of priorities

One of the projects mentioned by Africa50 is the $311 million partnership concluded with the Kenyan government and PowerGrid Corporation of India to develop high-voltage power lines in the form of a public-private partnership. The institution is also involved in electricity production projects in Nigeria, Egypt, Cameroon, and Madagascar.

In West Africa, Africa50 also operates the Senegambia Bridge, which connects Senegal and Gambia. The model involves collecting tolls in exchange for the maintenance and modernization of the infrastructure, as well as payments to public authorities. According to Tshepidi Moremong, this asset management activity could eventually represent between one-fifth and one-quarter of the group’s portfolio.

The platform is simultaneously continuing to mobilize capital for climate projects. In August, its project development fund of the Alliance for Green Infrastructure in Africa received an additional 50 million dollars from the Italian Cassa Depositi e Prestiti and Proparco. This vehicle aims to develop projects that are sufficiently prepared to subsequently attract larger private financing. This mobilization complements Africa50’s fund dedicated to decentralized renewable energies, which secured 71 million dollars in commitments in early September.

Created in 2015, Africa50 currently has 38 shareholders, including 33 African states, the African Development Bank, the BCEAO, Bank Al-Maghrib, the South African Public Investment Corporation, and Africa Re. In August, the institution stated that the Africa50 Infrastructure Acceleration Fund totaled approximately 330 million dollars in commitments following the entry of British International Investment.