Africa50 plans off-grid power, green infrastructure funds

• Published On: 05 February 2025 at 19:22

Africa50, a pan-African infrastructure investment platform, is launching the first continent-wide investment vehicle dedicated to off-grid power companies.

Bloomberg reports that the initiative intends to create a $500 million fund to support climate-friendly projects across Africa.

The effort, supported by shareholders such as the African Development Bank and Morocco's central bank, is consistent with regional governments' goals of expanding electricity access and mitigating climate change-related disruptions.

The World Bank and AfDB recently held a high-level conference in Tanzania to push forward initiatives aimed at providing electricity to 300 million Africans by 2030.

The Alliance for Green Infrastructure in Africa (AGIA) Fund will be in charge of project financing for renewable energy and low-carbon transportation solutions under the new funding structure.

Speaking at a conference in Tanzania. Alain Ebobisse, Chief Executive Officer of Africa50, announced that the fund will invest $400 million in project development and an additional $100 million in project preparation.

"You can catalyze $10 billion worth of investments," he said with such a fund. "The first close will be in the first half of the year."

Similarly, Africa50 is establishing a $200 million Distributed Renewable Energy Fund to support companies developing solar-powered mini-grids and home systems.

The Africa Solar Facility initiative, which aims to increase access to decentralized, clean energy solutions, will be supported by the International Solar Alliance.

Furthermore, Africa50 is collaborating with the Nigerian Sovereign Investment Authority and the United Nations-backed Sustainable Energy for All to establish a Nigeria-focused fund for distributed renewable energy.

Although the fund's final size has yet to be determined, the initiative is expected to play an important role in closing Nigeria's energy access gap.

Africa50 announced in 2024 that it will invest up to $100 million in IRENA's Energy Transition Accelerator Financing (ETAF) platform to fund and co-finance renewable energy transition projects and infrastructure across Africa, thereby contributing to the continent's sustainable development and climate action efforts.