Africa50, a Pan-African investor, is set to transform Africa’s energy landscape with a $500 million fund supporting sustainable and off-grid power projects across the continent.
Backed by shareholders like the African Development Bank (AfDB) and Morocco’s central bank, Africa50 is launching an innovative initiative for climate-friendly projects. This move aligns with Africa’s goal to increase electricity access and combat climate change, as highlighted by a recent World Bank and AfDB conference aiming to provide power to 300 million people by 2030.
This fund is the first of its kind in the region, focusing on renewable energy infrastructure. Africa50’s Alliance for Green Infrastructure in Africa fund includes $400 million for project development and $100 million for project preparation. CEO Alain Ebobisse emphasized the fund’s potential to attract $10 billion in investments for renewable energy, low-carbon transportation, and other green sectors. The initial close is expected in the first half of this year.
Additionally, Africa50 is launching a $200 million fund for decentralized renewable energy projects. Named the Africa Solar Facility, this initiative will be supported by the International Solar Alliance and will invest in solar mini-grids and home solar systems for off-grid communities. This effort aims to bridge energy access gaps in some of Africa’s most remote areas.
Africa50 is also considering a Nigeria-focused fund in partnership with the Nigerian Sovereign Investment Authority and Sustainable Energy for All, a United Nations-backed initiative. While the fund size is yet to be determined, it demonstrates Africa50’s commitment to expanding sustainable energy solutions on the continent.
The investor’s growing portfolio reflects a strategy to tap into Africa’s $2.3 trillion institutional capital. Over the past seven years, Africa50 has funded 28 projects across 27 African nations, managing assets totaling $1.1 billion. The organization is also pivotal in financing Africa’s first large-scale public-private partnership in electricity transmission, a major project between India’s Power Grid Corp. and Kenya’s government.
With these new initiatives, Africa50 is set to strengthen its role in Africa’s energy transition, paving the way for sustainable infrastructure development across the continent.