Africa50, a pan-African infrastructure investor and asset manager, plans to create a $500 million fund to boost off-grid energy and green infrastructure in Africa, Bloomberg reports. Backed by shareholders such as the African Development Bank (AfDB) and the Central Bank of Morocco, the fund will comprise $400 million for project development and $100 million for project preparation, targeting sectors such as renewable energy and low-carbon transportation.This project adds to others currently being developed by Africa50, such as the $200 million Africa Solar Facility managed by the International Solar Alliance, which aims to invest in companies providing decentralized renewable energy, including mini-grid solar and home systems. Another project in the pipeline involves creating a fund for distributed renewable energy in Nigeria, in collaboration with the Sovereign Investment Authority and the Sustainable Energy For All program, backed by the United Nations

This new $500 million fund will also significantly expand Africa50's investment portfolio. The organization currently manages three facilities: Africa50-Project Development, Africa50-Project Finance, and the Infrastructure Acceleration Facility (Africa50-IAF). "In just 7 years, it has brought 25 solid projects to life in 28 African countries, with a total value of around $8 billion," it states in its 2023 annual report.

The goal is to improve access to electricity, combat climate change, and mobilize African capital, helping to bridge Africa's annual infrastructure financing gap, estimated at over $100 billion by the African Development Bank. The CEO of Africa50 stated at a conference in Tanzania that this fund, which is expected to have its first closing in the first half of the year, will catalyze investments worth $10 billion.

 Christelle koambi.