Africa50, a pan-African infrastructure investment platform, is launching the first continent-wide investment vehicle focused on off-grid power companies.
The initiative plans to create a $500 million fund to support climate-friendly projects across Africa, according to Bloomberg.
Backed by shareholders including the African Development Bank and Morocco’s central bank, the effort aligns with regional governments’ goals to expand electricity access and address climate change-related disruptions.
The World Bank and AfDB recently held a high-level conference in Tanzania to accelerate initiatives aimed at providing electricity to 300 million Africans by 2030.
The new funding structure includes the Alliance for Green Infrastructure in Africa (AGIA) Fund, which will lead project financing in renewable energy and low-carbon transport solutions.
Speaking at a conference in Tanzania, The Chief Executive Officer of Africa50, Alain Ebobisse, revealed that the fund will allocate $400 million towards project development and an additional $100 million for project preparation.
With such a fund, “you can catalyze $10 billion worth of investments,” he said. “The first close will be in the first half of the year.”
Similarly, Africa50 is launching a $200 million Distributed Renewable Energy Fund to support companies working on solar-powered mini-grids and home systems.
The International Solar Alliance will support the Africa Solar Facility, an initiative designed to expand access to decentralized, clean energy solutions.
Additionally, Africa50 is partnering with the Nigerian Sovereign Investment Authority and the United Nations-backed Sustainable Energy for All to create a Nigeria-focused fund for distributed renewable energy.
Although the final size of the fund is yet to be determined, the initiative is expected to play a crucial role in closing Nigeria’s energy access gap.
In 2024, Africa50 announced it will invest up to $100 million to fund and co-finance renewable energy transition projects and infrastructure across Africa through IRENA’s Energy Transition Accelerator Financing (ETAF) platform, furthering sustainable development and climate action efforts on the continent.
