Mobilization of capital into African infrastructure is one of Africa50’s strategic mandates, and as a result, the Africa50 Infrastructure Acceleration Fund (IAF) - a 12 year closeended infrastructure private equity fund was launched. Through the IAF, Africa50 is mobilizing large scale and long-term institutional capital from African and international institutions. The IAF will make equity and quasi-equity investments and take mostly majority stakes in infrastructure projects across the continent. Achieving first close for our first sponsored investment vehicle is critically important to our strategic goal to mobilize institutional investor capital for investments into African infrastructure.
Africa50 only takes strategic minority stakes in projects, principally equity or quasi-equity. Potential developers need to demonstrate that they have other sources of funding necessary to complete the financing plan.
Prospective deals that Africa50 - Project Development or Africa50 - Project Finance wish to pursue are presented by the relevant investment teams, under the leadership of their respective Managing Directors, to the Investment Committee of Africa50 – Project Development or Africa50 – Project Finance, respectively, for approval.
After an initial Investment Committee approval at concept stage, the teams carry out detailed analysis, consultations, due diligence missions, and deal structuring, before requesting final approval to invest from their respective Investment Committees. The Investment Committees are made up of Africa50’s CEO (who chairs the committee) and external independent experts (two of whom are Africa50 independent Board members), with extensive investment expertise in the priority sectors of Africa50. The Investment Committee members are recruited globally, chosen by the CEO, and presented to the Boards of Directors for approval. The Chair of the Investment Committee reports to the Board on the committee’s activities, but the Investment Committee is not a committee of the Board.
To be eligible for Africa50 funding, a project should meet several criteria. It should:
- Be predominantly private sector or undertaken under a public private partnership framework (PPP).
- Be mid-to-large scale, generally with a project value over $100 million.
- Smaller projects may be considered exceptionally on a case-by-case basis.
- Relate to Africa50’s priority sectors: Power, Transport, Midstream Gas and ICT. Other infrastructure sectors may be considered on a case-by-case basis.
- Be technically and financially sound.
- Be supported by reputable partners with relevant track records.
- Be beneficial to the local economy.
- Meet world-class environmental, social, and governance standards.