The Africa50 Infrastructure Acceleration Fund (IAF) has reached a new milestone, with the Development Bank of Southern Africa (DBSA) and pan-African group Axian having agreed to invest in the IAF. 

The signings happened on the sidelines of the Africa Investment Forum Market Days in Rabat, Morocco, which took place from December 4 to 6.

This announcement builds on the successful $222.5-million first close of the IAF in December 2023 and continues the process of mobilising new global and domestic capital to help bridge Africa’s infrastructure gap.

DBSA and Axian’s expected participation in the IAF expands Africa’s growing pool of international and regional investors that are committing to invest in the African infrastructure asset class.

It also underscores institutional confidence in the IAF’s investment and de-risking capabilities for deploying capital into promising infrastructure sectors such as energy, digital infrastructure and transportation. 

“Participation in the IAF allows for collaboration with various institutional investors to significantly contribute to mobilising and pooling financial resources, expertise and networks to close the infrastructure gap on the continent.

“The IAF seeks to invest in infrastructure that supports the economic and social upliftment of the communities and countries in which it invests, and this is aligned to the DBSA’s strategic objectives,” said DBSA CEO Boitumelo Mosako.

Investors in the IAF also benefit from exposure to Africa50’s pan-African footprint, expertise in project development, later-stage equity investing and distinguished access to a pipeline of off-market investment opportunities.

“Africa has the projects, resources and talent. We need to accelerate progress. By signing this Letter of Intent to invest in Africa50’s Infrastructure Acceleration Fund, we reaffirm our commitment to advancing transformative infrastructure projects across the continent and fostering sustainable growth for Africa,” added Axian CEO Hassanein Hiridjee.

“We are pleased to welcome DBSA and Axian as participants in the Africa50 IAF. They are joining the 16 African institutional investors and one global investor who were part of IAF’s first close last year. This new milestone underscores Africa50 Group’s strategic mandate to tap into deep and diverse pools of capital in Africa and globally, to accelerate the delivery of infrastructure projects in Africa,” said Africa50 Group CEO Alain Ebobissé.

“We are delighted by DBSA and Axian group’s interest in the IAF, which currently has a diverse pool of institutional investors that have identified the IAF as a key vehicle to accelerate infrastructure investment in Africa.

“Mobilising additional investors in less than one year demonstrates the IAF’s capital-raising capabilities and the commitment of investors in Africa to provide the much-needed capital for impactful and profitable infrastructure projects that will improve the lives of millions of Africans across the continent,” added IAF CEO Vincent le Guennou.