Africa50 draws on 20 African states
The new and innovative infrastructure investment platform promoted by the African Development Bank, Africa50, held its Constitutive General Assembly last week in Casablanca, Morocco. The first closing raised US$830 million in share capital, earmarked to support infrastructure funding across the continent.
Twenty African countries and the African Development Bank have subscribed for an initial aggregate amount of USD 830 million in share capital.
These founding countries are Benin, Cameroon, Congo, Djibouti, Egypt, Gabon, Ghana, Ivory Coast, Madagascar, Malawi, Mali, Mauritania, Morocco, Nigeria, Niger, Senegal, Sierra Leone, Sudan, The Gambia and Togo.
While this first closing was available only to African countries, it is anticipated that the second and subsequent closings will be available not only to African countries that are yet to invest in Africa50, but also non-sovereign investors both in Africa and outside Africa. The second closing is expected before the end of 2015.
Speaking at this historic event, Dr. Donald Kaberuka, President of African Development Bank and current Chairman of the Boards of Directors of Africa50, said “the large presence of African States and their financial commitments are a testimony to a shared vision to find new ways to accelerate the provision of infrastructure. Africa50 will be a step change for infrastructure financing and development in Africa”. Africa50’s raison d’être is to mobilize long-term savings within and outside Africa for the financing of commercially viable infrastructure projects across Africa. Through an integrated approach, Africa50 will invest in African infrastructure projects at scale along the entire project finance value chain leveraging its Project Finance and Project Development windows. The strong expression of commitment today by the African countries is a necessary first step towards attracting institutional investors, including sovereign wealth funds, pension funds, insurance companies and other sources of long-term finance around the world. Africa50’s medium term capitalization is projected to reach US$ 3 billion.
