AfDB, partners to jointly mobilise capital for infrastructural projects

Africa50, the African Development Bank (AfDB) and Africa Sovereign Investors Forum (ASIF) have signed a letter of intent to collaborate on developing green and climate-resilient infrastructure projects across Africa.

The three entities will work together to galvanise financing and drive the development of skills and expertise within the infrastructure sector.

The signing took in Rabat, Morocco, during an event to launch the Africa Sovereign Investors Forum.

AfDB in a statement disclosed that the signatories are Agaciro Development Fund of Rwanda, Fonds Souverain de Djibouti, Fonds Gabonais d’Investissements Stratégique, Fonds Souverain d’Investissements Stratégiques of Senegal, Fundo Soberano de Angola, Ghana Infrastructure Investment Fund, Ithmar Capital of Morocco, Nigeria Sovereign Investment Authority and The Sovereign Fund of Egypt.

Addressing deficit

The Chief Executive Officer of Africa50, Alain Ebobissé, was quoted as saying the initiative was an important step to building strong collaboration between the right stakeholders to meet the substantial infrastructure financing needs of Africa.

“We must make key regional infrastructure projects attractive and bankable for both global and African private investors and today’s signing will go a long way to address the continent’s infrastructure deficit,” he said.

“It is therefore important that we leverage the strength of the African sovereign wealth funds on the continent, who manage significant domestic savings, to drive the growth of Africa’s economies through the development and successful implementation of strategic infrastructure,” he added.

AfDB Vice-President Solomon Quaynor said his outfit’s partnership with ASIF and Africa50 would enable stronger collaborations on project development and co-financing, mobilisation of capital to fund resilient, green and sustainable infrastructure, and identification of investment opportunities to promote Africa’s infrastructure and industrialization.

“This is a key part of the Bank’s strategy to harness the estimated $2 trillion of assets under management from African institutional investors including sovereign wealth funds, pension funds and insurance companies for the continent’s infrastructure and industrialisation,” he said.

For the Chief Executive of Ithamar Capital, Obaid Amrane, “ASIF main objective is to accelerate the development of investment opportunities and to mobilize patient capital. As sovereign investors, we see strong complementarities with African Development Bank and Africa50, especially, since our visions are aligned concerning the project preparation and capital mobilization. We are pleased to formalise ASIF, AfDB, and Africa50’s mutual desire to collaborate, for we have a common objective to foster investment in climate-resilient projects, among others, according to our respective mandate.”

The collaboration agreement will also seek to address the identification and preparation of projects, a critical success factor in attracting financing to any projects.

About Africa50:

Africa50 is an infrastructure investment platform that contributes to Africa’s growth by developing and investing in bankable projects, catalysing public sector capital, and mobilising private sector funding, with differentiated financial returns and impact.

Africa50 currently has 31 shareholders, comprised of 28 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib.