Africa50 to Launch $500 Million Fund For Off-Grid Power And Green Infrastructure In Africa

Africa50, a pan-African infrastructure investment platform, is preparing to launch a $500 million fund aimed at supporting off-grid power companies and advancing climate-friendly infrastructure projects across the continent.

The initiative, backed by key stakeholders including the African Development Bank (AfDB) and Morocco’s central bank, aligns with efforts by African governments to expand electricity access and mitigate the impact of climate change. The fund is designed to provide financing for renewable energy and low-carbon transport solutions.

As part of this initiative, Africa50 is establishing the Alliance for Green Infrastructure in Africa (AGIA) Fund, which will allocate $400 million for project development and an additional $100 million for project preparation. Africa50 Chief Executive Officer Alain Ebobisse states that this funding structure has the potential to catalyze up to $10 billion in total investments, with the first phase expected to close in the first half of the year.

Expanding Access to Renewable Energy

In a separate effort, Africa50 is setting up a $200 million Distributed Renewable Energy Fund to finance companies involved in solar-powered mini-grids and home energy systems. This initiative, named the Africa Solar Facility, is sponsored by the International Solar Alliance and aims to promote decentralized, clean energy solutions.

Additionally, Africa50 is partnering with the Nigerian Sovereign Investment Authority (NSIA) and Sustainable Energy for All (SEforALL) to develop a Nigeria-focused fund dedicated to distributed renewable energy projects. While the final size of this fund is yet to be determined, it is expected to play a significant role in addressing Nigeria’s energy access challenges.

Commitment to Africa’s Energy Transition

Africa50 has previously committed up to $100 million to finance renewable energy transition projects through the International Renewable Energy Agency’s (IRENA) Energy Transition Accelerator Financing (ETAF) platform. This investment reinforces efforts to accelerate sustainable development and climate action across Africa.

IRENA Director-General Francesco La Camera highlights the urgency of addressing energy access issues, stating that recent data shows a significant increase in the number of people without electricity, particularly in Sub-Saharan Africa. He emphasizes that renewable energy presents the most effective and climate-resilient solution to this growing challenge, with Africa50’s involvement expected to enhance the impact of the ETAF platform across the continent.