Africa50 to Set Up $500M Green Off-Grid Power Fund

Africa50, a pan-continental infrastructural investor based in Casablanca, is setting up a USD 500 million fund targeted at promoting green off-grid power projects across Africa. The fund is aptly named Alliance for Green Infrastructure in Africa (AGIA).

Alain Ebobisse made the plan public during an interview at a conference in Tanzania. He explained that out of the USD 500 million, USD 400 will go to project development, while USD 100 million be for project preparation.

“With such a fund, you can expect to mobilize up to $10 billion worth of investments. The first close will be in the first half of 2025.”

Africa50 CEO Alain Ebobisse

The creation of the Fund is part of the larger #M300 initiative to bring power to 300 millions Africans by 2030. In addition, Africa50 is setting up another USD 200 million Distributed Renewable Energy Fund for projects such as solar-powered mini-grids and home PV systems. The International Solar Alliance (ISA) will sponsor the new fund, called the Africa Solar Facility.

The money for the AGIA Fund comes from sixteen African institutional investors, including Sovereign Wealth Funds (SWF) and commercial banks. The International Finance Corporation under the World Bank Group is the only non-African backer.

Africa50 aims to tap into the USD 2.3 trillion held by African institutions to catalyze the #ElectricityAccess in Africa. Over the past seven years, Africa50 has invested in 28 projects in 27 countries across Africa.

One of the flagship project is the financing of the electrical transmission line in Kenya. The deal is based on a Public-Private Partnership (PPP) between the Kenya Electricity Transmission Company (KETRACO) and Power Grid Corporation of India. Currently, Africa50 has signed MoU for similar projects in Gabon, Mozambique, and Tanzania.