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), which was set up to catalyse further investment flows for the development of critical infrastructure across the continent.
IAF is a 12-year close ended infrastructure private equity fund, mobilising large-scale and long-term institutional capital from African and international institutions.
This collaboration is said to bring together a diverse group of influential stakeholders comprised of 18 entities – 17 African sovereign wealth funds, development finance institutions (DFIs), banks, pension funds, asset managers and retirement agencies and one international institutional investor.
The signing ceremony in Lomé, Togo, took place during Africa50’s Infra for Africa Forum on the margins of its general shareholders meeting on July 3.
The commitment from institutional investors is expected to unlock infrastructure projects across various sectors, including energy, transportation, telecommunications and water, besides others.
“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 $$98-trillion of global assets under management,” African Development Bank president Dr Akinwumi Adesina said at the signing ceremony.
“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 catalyse African financial resources to build the foundations for a brighter future, one that drives prosperity, job creation and sustainable development for all Africans,” Africa50 CEO Alain Ebobissé says.