Pan-African investment platform Africa50 has announced the creation of a new US$500 million fund called the Africa50 Infrastructure Acceleration Fund, aimed at catalysing further investment flows into African infrastructure.
Leveraging Africa50’s Project Development and Project Finance Vehicles, the new fund seeks to invest in bankable infrastructure projects and assets, providing attractive risk-adjusted returns for investors.
Fund also seeks to make investments that contribute to Africa meeting its climate action commitments, Industrialization, and economic growth aspirations.
Vincent Le Guennou, a seasoned pan-African investor, to lead new fund with other high-caliber executives in key leadership roles drawn from Africa and Globally.
“Africa50 named African private equity executive, Vincent Le Guennou, to lead the new entity, with the objective of raising US$500 million in multiple closings, for investment across the continent,” Africa 50 said in a statement.
“The new Fund is a result of a long-haul effort by Africa50 to mobilize further capital to help bridge Africa’s infrastructure financing gap. The Fund’s mandate is to deliver attractive risk-adjusted returns for institutional investors looking for exposure to African infrastructure assets, while playing a critical role in financing medium and large-scale infrastructure projects in Africa.”
Alain Ebobissé, CEO of Africa50, said sponsoring the Africa50 Infrastructure Acceleration Fund was a critical pillar of Africa50’s capital mobilization strategy.
“It will enable us to tap into a different pool of investors as well as long-term savings to increase Africa’s infrastructure investment capabilities. Attracting more private sector capital is key to relieving already-constrained public budgets and contributing to the continent’s growth and post-pandemic recovery. I am delighted to welcome Vincent as the CEO of this new Africa50-backed fund. He brings international stature and considerable experience in structuring transformational private equity deals across Africa. His strategic results-driven leadership and impressive record as an innovative thinker will be strong assets that underpin the success of the Fund,” Ebobissé said.
The new fund will mobilize resources from private and institutional investors in Africa and globally, some of which are currently mostly untapped sources of capital for African infrastructure.
The funds will be invested in power, transport, ICT, midstream gas, health and education sectors that are key pillars of African economies’ sustainable and impactful growth, and which strengthen Africa’s resilience.
Guennou said excited by the opportunity to build a successful investment vehicle backed by a strong African investor with the goal to deliver attractive returns and excellent development impact,
“Having devoted my professional life to investing in Africa’s private sector, I have seen first-hand the need for improved infrastructure to support business competitiveness and accelerate growth. Infrastructure is an asset class that I know well and have invested in over the years. I am pleased to join the Africa50 Group to lead this new infrastructure fund at such a crucial time in our continent’s development. I am excited by the opportunity to build a successful investment vehicle backed by a strong African investor with the goal to deliver attractive returns and excellent development impact.” Vincent Le Guennou, said about the announcement.
Africa50 is a pan-African investment platform that contributes to Africa’s growth by developing and investing in bankable projects.It prioritizes investment in medium-to large scale projects in the power, transport, ICT and midstream gas sectors, providing appropriate risk-adjusted return to investors, while delivering development impact.