Africa50, a pan-African infrastructure investment platform, is set to launch the first region-wide investment vehicle dedicated to off-grid power companies, with plans to establish a $500 million fund to support climate-friendly projects across the continent, Bloomberg reported.
The initiative, backed by shareholders including the African Development Bank (AfDB) and Morocco’s central bank, aligns with efforts by regional governments to expand electricity access and mitigate the effects of climate change-induced weather disruptions.
The World Bank and AfDB recently convened a high-level conference aimed at accelerating initiatives to bring electricity to 300 million Africans by 2030 in Tanzania.
AGAI Fund to Drive Sustainable Infrastructure
The new funding structure includes the Alliance for Green Infrastructure in Africa (AGIA) Fund, which will spearhead project financing in renewable energy and low-carbon transport solutions.
Africa50 Chief Executive Officer Alain Ebobisse, speaking at a conference in Tanzania, 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.”
Boosting Distributed Renewable Energy
In a parallel effort, Africa50 is establishing a $200 million Distributed Renewable Energy Fund to finance companies involved in solar-powered mini-grids and home systems.
The International Solar Alliance will sponsor this initiative, known as the Africa Solar Facility, aimed at expanding access to decentralized, clean energy solutions.
Furthermore, Africa50 is collaborating with the Nigerian Sovereign Investment Authority (NSIA) and the United Nations-backed Sustainable Energy for All (SEforALL) to launch a Nigeria-focused fund for distributed renewable energy. While the partners have yet to determine its final size, the initiative is expected to play a key role in bridging Nigeria’s energy access gap.
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In 2024, Africa50 announced it will be putting up to $100 million to fund and co-finance renewables-based energy transition projects and infrastructure across Africa through IRENA’s Energy Transition Accelerator Financing (ETAF) platform, reinforcing efforts towards sustainable development and climate action across the continent.
The director-general of IRENA, Mr. Francesco La Camera stated that “for the first time in a decade, the most recent data show that the number of people without access to electricity has increased significantly.
“With Sub-Saharan Africa representing the majority of those impacted, we must be diligent and committed to urgently addressing this growing issue. Renewables represent the most effective, climate-safe solution available, and this partnership with Africa50 will be pivotal in strengthening the ETAF Platform’s impact across Africa.”
