Focus Sectors & Criteria
We prioritize investment in the power, ICT, transport, and midstream gas sectors.
Bringing project development and financing together in one organization, Africa50 seeks to provide support at every stage of the project cycle.
Join Africa50 in finding innovative solutions to respond to Africa’s most critical and pressing infrastructure challenges.
Room2Run is a Risk Protection Agreement related to a US$1 billion portfolio of seasoned pan- African loans held by the African Development Bank.
Room2Run is the first-ever synthetic portfolio securitization between a multilateral development bank (MDB) and private sector investors, pioneering the use of securitization and credit risk transfer technology in a new segment of the financial markets. Structured as a synthetic securitization by Mizuho International, it transfers the mezzanine credit risk on a portfolio of 47 African Development Bank non-sovereign loans in the power, transportation, financial, and manufacturing sectors across Africa. Africa50 invested into Room2Run alongside Mariner Investment Group, a US investment firm.
Africa50 and Mariner Investment Group (a US investment firm) invested through a Risk Protection Agreement.
African Deveopment Bank, Newmarket Capital
- The African Development Bank is expected to redeploy its freed-up capital from Room2Run into infrastructure project finance assets, which provide significant capital to both traditional and renewable energy projects.
- Room2Run provides a template for attracting private capital from institutional investors into developing economies in a commercially viable way, which should help increase investment in the infrastructure and productive sectors of those economies.
- The African Development Bank ’s additional renewable energy projects are expected to lower greenhouse gas emissions across Africa while increasing energy access.
- In the long term, the increased investment by the private sector, stimulated through Room2Run, should increase job creation and employment.