The Africa50 Infrastructure Acceleration Fund (IAF) has attracted a new investor. The International Finance Corporation (IFC) is taking a $20 million stake in this financing mechanism initiated by the Africa50 platform. This 12-year private equity fund mobilizes large-scale, long-term institutional capital from African and international institutions.
The IAF will make equity and quasi-equity investments and take majority stakes in infrastructure projects across the continent. The fund, which has already achieved an initial closing of $222.5 million, aims to finance projects in digital infrastructure, renewable energy and power, transport, logistics, and water and sanitation.
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“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 a direct positive impact on people across Africa, including those focused on climate change mitigation,” explains Sarvesh Suri, Regional Director (Africa) for Industry, Infrastructure and Natural Resources.
According to Suri, the IFC’s investment in the IAF fund should help mobilize more private financing. This includes attracting the support of institutional investors, development finance institutions, as well as local and regional banks. The AIF fund aims to mobilize $500 million for the financing of sustainable infrastructure in Africa. This initiative is fully in line with Africa50’s strategy, which has seen it multiply its partnerships, notably with the West African Development Bank (BOAD), to finance sustainable infrastructure on the continent.
Jean Marie Takouleu