Africa50 launches $500mn infrastructure fund

Africa50, a major investor in continental growth, has announced the launch of a new $500 million infrastructure fund aimed at driving economic development across the African continent. In a recent interview with CNBC Africa, Alain Ebobissé, the CEO of Africa50, shed light on the projects the fund will target and the investors it aims to attract to bridge the infrastructure gap in Africa. Ebobissé highlighted that the primary focus of the fund will be on key sectors crucial for Africa's economic advancement, including power, transport, ICT, health, and education infrastructure. The fund aims to make a significant impact while also generating attractive financial returns to entice investors. Ebobissé emphasized the importance of mobilizing both regional and global investors, particularly targeting insurance investors in Eastern Africa with a pool of capital amounting to an estimated two trillion US dollars. He expressed optimism in attracting potential investors who are not only seeking financial gains but also aim to contribute to Africa's infrastructure development. With commitments from the African Development Bank, African countries, and African commercial banks, Africa50 has laid the groundwork to attract additional capital and create an appealing investment opportunity for prospective investors. Despite challenges posed by the COVID-19 pandemic and previous slow progress in capital deployment, Ebobissé remains confident in the fund's ability to garner the necessary support and momentum. The CEO highlighted ongoing reforms across the continent aimed at leveraging pension funds for infrastructure investment, emphasizing the need for improved regulatory environments to facilitate private capital inflows. Africa50 is aligning its efforts with these reforms to tap into the vast pool of private capital and drive infrastructure development. When questioned about benchmarks, Ebobissé stressed the importance of offering expected returns that match market standards to attract investors. The fund is committed to engaging in conversations with investors to set competitive expected returns aligned with market expectations. By focusing on key sectors, mobilizing regional and global investors, and aligning with regulatory reforms, Africa50's new infrastructure fund is poised to play a critical role in advancing Africa's economic growth and bridging the continent's infrastructure gap.