Additional IFC’s $20m to support infrastructure development in Africa
IFC has recently announced a $20 million equity investment in the Africa50 Infrastructure Acceleration Fund (IAF Fund) to support sustainable infrastructure development in Africa. The fund will focus on investing in digital infrastructure, renewable power and energy, transportation, logistics, and water and sanitation projects. This aligns with the World Bank Group’s initiatives and IFC’s strategy to promote projects with high development impact.
The fund has already secured $222.5 million in commitments, including investments from 16 African institutional investors. Its final target close is $500 million. This strong support from African institutional investors demonstrates their increasing role in financing the real economy and unlocking Africa’s potential.
Alain Ebobissé, CEO of Africa50 Group, expressed his excitement about the support received from African institutional investors for the Africa50 Infrastructure Acceleration Fund. He sees this achievement as a testament to the growing involvement of African investors in mobilizing private sector capital for African infrastructure projects.
Sarvesh Suri, IFC Regional Industry Director for Infrastructure and Natural Resources, Africa, emphasized the importance of investing in infrastructure for Africa’s social and economic development. The partnership with IAF will help promote and mobilize much-needed equity capital for projects that will directly benefit populations across Africa, including those focused on climate mitigation.
Africa is currently grappling with major infrastructure hurdles that are hindering its economic growth. The continent is lagging behind in terms of access to various types of infrastructure such as power, digital connectivity, roads, and water, which is adversely affecting economic activity. However, the International Finance Corporation’s (IFC) investment in the Infrastructure Africa Fund (IAF) is anticipated to play a crucial role in addressing this issue.
By mobilizing additional private financing for the fund, the IFC aims to attract support from institutional investors, development finance institutions, as well as local and regional banks. This concerted effort will help bridge the infrastructure gap and pave the way for enhanced economic development in Africa.
