Prominent African and global institutional
investors have signed subscription agreements and letters of intent in
preparation for the first close of the Africa50 Infrastructure Acceleration
Fund (IAF or the “Fund”), set up to catalyze further investment flows to invest
in the development of critical infrastructure across the continent.
This
historic collaboration brings together a diverse group of influential
stakeholders comprised of 17 African - including sovereign wealth funds,
development finance institutions (DFIs), banks, pension funds, asset managers
and retirement agencies and 1 international institutional investor, with other
additional entities expected to join the first close.
The
signing ceremony in Lomé, Togo, which took place during Africa50’s Infra for
Africa Forum on the margins of its General Shareholders Meeting, is an
unprecedented milestone for the continent. Indeed, mobilizing such a
significant number of African institutional investors is a first for an
infrastructure fund in Africa. It demonstrates the continent's determination to
be in the driving seat while forging global partnerships to stimulate its
economic growth.
Africa50's
Infrastructure Acceleration Fund represents a pivotal vehicle that aims to
bridge the financing gap in Africa's infrastructure landscape. The commitments
from the institutional investors will unlock transformative infrastructure
projects across various sectors, including energy, transportation,
telecommunications, water, among others.
Speaking
on this momentous occasion at the signing ceremony, the President of the
African Development Bank, Dr. Akinwumi A. Adesina said, “I strongly
believe that for African institutional investors, this is the time to change
the investment narrative on Africa. It is remarkable and unprecedented to have
17 African institutions participating in such a transforming initiative to
invest in an African infrastructure fund. With the Fund, we are positioning the
Africa50 Group to play a lead role in helping to tap into the more than USD$98
trillion of global assets under management”.
Aminu Umar-Sadiq, CEO and Managing Director, Nigeria
Sovereign Wealth Fund remarked, “Aminu Umar-Sadiq, Managing Director and CEO, Nigeria
Sovereign Investment Authority remarked, “NSIA’s priority focus on sustainable
infrastructure aligns with the fund’s vision to positively contribute to
economic growth and development of the continent, including investing
profitably, responsibly, and sustainably. The NSIA has a clear mandate to bring
development to Nigeria and by extension, the continent at large and our
investment in the Africa50 Infrastructure Acceleration Fund is an opportunity
to expand our development impact in Africa while generating attractive
financial returns.”.
Dr. Sidi Ould Tah, CEO of the Arab Bank for Economic
Development in Africa (BADEA), which is also
investing in the fund said, “BADEA’s investments are meant to have a meaningful impact in
the economies of its partners countries across various sectors. Infrastructure
has always been the main area of focus for BADEA. Africa is a region with
tremendous potential and a key priority for us, we are therefore pleased to
join a credible partner like Africa50 in this groundbreaking partnership,
to scale up infrastructure development on the continent”
M. Serge Ekué, President of the West African
Development Bank (BOAD), an investor in the Fund said: “BOAD is always
keen on supporting initiatives that help drive prosperity for the continent
and scale the impact of our investments. We believe this fund will support the
right infrastructure. projects the continent needs to create opportunities for
its youth and spur economic development”.
For his part, Alain Ebobissé, CEO of Africa50 commented, "Securing commitments
from such prominent African institutional investors marks the beginning of a
new era of collaboration and investment in Africa's infrastructure sector. This
African-led initiative is a powerful testament to our collective vision of
transforming Africa's infrastructure landscape. Together, we will catalyze
African financial resources to build the foundations for a brighter future, one
that drives prosperity, job creation, and sustainable development for all
Africans".