Prominent African and global institutional investors have signed on to the new $500-million Africa50 Infrastructure Acceleration Fund, a move described as an unprecedented milestone for Africa.

The fund is the first private vehicle infrastructure platform launched by Africa50.

The Africa50 Infrastructure Acceleration Fund is a 12-year closed-end infrastructure private equity fund that mobilises large and long-term institutional capital from African and international institutions. The fund will make equity and quasi-equity investments – primarily taking majority stakes – in infrastructure projects across Africa.

The collaboration brings together a diverse group of influential stakeholders from Africa and outside the region. It comprises 17 African shareholders, including sovereign wealth funds, development finance institutions, banks, pension funds, asset managers, retirement agencies, and two international institutional investors.

The fund will catalyse further investment flows to the development of critical infrastructure across Africa, including energy, transportation, telecommunications, and water, among other areas.

“This is impressive and a first for 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,” says African Development Bank (AfDB) president and Africa50 chairperson Dr Akinwumi Adesina.

The AfDB is investing $20-million in equity in the Africa50 Infrastructure Acceleration Fund.

Other investors include the International Finance Corporation, the Nigeria Sovereign Investment Authority, the Arab Bank for Economic Development in Africa, the West African Development Bank, CDC Sénégal, CDC Benin, CNSS Togo, CDG Invest and the Attijariwafa Bank of Morocco.

Nigeria Sovereign Wealth Fund CEO and MD Aminu Umar-Sadiq says his agency’s priority focus on sustainable infrastructure is consistent with its vision to contribute positively to Africa's economic growth and development, including investing profitably, responsibly and sustainably.

“The Nigeria Sovereign Wealth Fund has a clear mandate to bring development to Nigeria, and by extension Africa. Our investment in the Africa50 Infrastructure Acceleration Fund is an opportunity to increase our development impact in Africa while generating attractive financial returns,” he adds.

Arab Bank for Economic Development in Africa CEO Dr Sidi Ould Tah comments that Africa is a region with tremendous potential. “We are delighted to join a credible partner like Africa50 in this groundbreaking partnership to scale up infrastructure development on the continent."

Africa50 CEO Alain Ebobissé says 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 demonstration of our shared vision to transform Africa's infrastructure landscape. Together, we will catalyse African financial resources to lay the foundations for a better future, one that drives prosperity, job creation, and sustainable development for all Africans,” he added.