Africa50 focuses on commercially sustainable projects. Its operations are carried out through two business lines
Africa50 focuses on medium to large scale infrastructure projects that are commercially and environmentally sustainable, have a significant development impact, and offer an appropriate return to investors. By bringing project development and financing together in one institution, Africa50 can provide support at every stage of the project cycle.
The primary objective of this division is to increase the number of bankable infrastructure projects. In addition to providing financing at earlier stages of projects, Africa50’s staff actively contributes to project development, with a particular focus on mobilizing political support. It acts as a strategic minority partner alongside project developers who have the required industrial expertise and financial standing. Project development costs are shared with developers and recovered at financial close, generally through the right to invest equity in the project.
Africa50 invests in projects through equity and equity-like instruments at or near financial close or beyond. As in the project development phase, it seeks minority financial positions in projects sponsored by strong partners. Thanks to its sovereign shareholder base, Africa50 can play a key role in managing the relationship with host governments, lessening political and regulatory risk. Africa50 invests in public private partnerships or in private projects with predictable cash flow.
Sectors and projects
Africa50’s primary target sectors are:
- Energy, including renewable and conventional generation, power transmission and distribution, and mid- and downstream gas infrastructure.
- Transport, including roads, airports, ports, and logistics.
Projects in information and communications, water and sanitation, as well as other infrastructure sub-sectors, are eligible on a case by case basis.
Cycle of the projects
Africa is simply tired of being in the dark. It is time to take decisive action and turn around this narrative: to light up and power Africa – and accelerate the pace of economic transformation, unlock the potential of businesses, and drive much needed industrialization to create jobs.