New $500 Million Africa50 Fund to Accelerate Renewable Energy and Green Infrastructure Projects

Africa50, a pan-African infrastructure investment platform, is launching a substantial $500 million fund aimed at bolstering off-grid power and green infrastructure projects across the African continent.

This initiative arrives as regional governments increasingly prioritize the expansion of electricity access and the mitigation of climate change impacts.

The fund seeks to address the significant energy gap in Africa, where millions lack reliable access to electricity, while simultaneously promoting sustainable development and a transition to cleaner energy sources.

The new funding structure includes the Alliance for Green Infrastructure in Africa (AGIA) Fund, which will allocate $400 million towards project development and an additional $100 million for project preparation.

This fund will target a range of sectors, from renewable energy generation to transport solutions that limit greenhouse gas emissions.

Africa50 CEO Alain Ebobisse stated that the fund could catalyze $10 billion worth of investments. The first closing of the fund is expected in the first half of the year.

In addition to the AGIA Fund, Africa50 is establishing a separate $200 million Distributed Renewable Energy Fund to finance companies involved in solar-powered mini-grids and home systems.

This fund, known as the Africa Solar Facility, will be sponsored by the International Solar Alliance.

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Africa50 is also collaborating with the Nigerian Sovereign Investment Authority (NSIA) and Sustainable Energy for All (SEforALL) to launch a Nigeria-focused fund for distributed renewable energy, though the final size is yet to be determined.

This initiative aligns with broader efforts to bring electricity to 300 million Africans by 2030, as highlighted during a recent conference convened by the World Bank and the African Development Bank (AfDB) in Tanzania.

Africa50’s efforts build upon its commitment to supporting Africa’s energy transition. The organization has invested in 28 projects in 27 African countries and currently manages $1.1 billion in assets.

Sixteen African institutional investors, including sovereign wealth funds and commercial banks, have provided capital for the infrastructure fund. Africa50 aims to further tap into the estimated $2.3 trillion held by African institutions.

IRENA’s Director-General, Francesco La Camera, warned that global progress toward universal electricity access is slowing, with Sub-Saharan Africa bearing the brunt of the crisis. He stressed that renewables remain the most effective and climate-resilient solution to this challenge.

The launch of Africa50’s $500 million fund represents a significant milestone in the continent’s energy transformation journey.

By mobilizing investments for off-grid power solutions and distributed renewable energy projects, the initiative is expected to accelerate electrification efforts and enhance energy security in Africa.

Moreover, the fund’s focus on green infrastructure aligns with global climate goals and Africa’s broader commitment to reducing carbon emissions.

As the region continues to grapple with the effects of climate change, investments in clean energy will play a crucial role in building resilience and ensuring sustainable economic growth.

Africa50 is about to complete the financing of Africa’s first large-scale public-private partnership on electricity-transmission lines between Power Grid Corp. of India and Kenya’s government.

It has signed memorandums of understanding to pursue similar projects in Mozambique, Tanzania, and Gabon.