RABAT, Sept 8 – Africa50, the pan-African infrastructure investment platform plans to more than double the combined value of infrastructure projects it backs to at least $20 billion over the next five years, as the continent faces a persistent shortage of funding for power, transport and other critical infrastructure.
Tshepidi Moremong, chief operating officer of the Casablanca-based infrastructure investment fund, told Reuters that Africa50 intends to significantly expand the scale of projects in which it participates.
“We are really looking to see how at least over the next several years, we can look to double or triple that number from a value perspective,” Moremong said.
Established by African leaders in 2015, Africa50 has so far co-invested in 36 projects spanning electricity, transport, logistics and other sectors, with a combined value of about $9 billion. The fund itself has contributed approximately $500 million in equity across those investments.
“We would like to see $20 billion and above,” Moremong said, referring to the total value of projects Africa50 expects to co-invest in during the next five years.
Power Remains a Priority
Africa50 plans to concentrate on sectors where financing shortages remain particularly severe, with electricity generation and transmission among its key priorities.
In December, the fund signed an agreement with India’s PowerGrid and the Kenyan government to develop $311 million of high-voltage transmission infrastructure through a public-private partnership.
Its existing portfolio also includes power-generation investments in Nigeria, Egypt, Cameroon and Madagascar, alongside an information and communications technology project in Rwanda and investments in regional healthcare businesses.
The expansion comes as Africa continues to face a major infrastructure financing shortfall. The African Development Bank estimates that the continent requires more than $100 billion in additional infrastructure financing each year, with the funding challenge becoming more pronounced as overseas development assistance from wealthier countries declines.
Africa50 Expands Beyond Traditional Investment
Africa50 is also developing an infrastructure operating model that allows it to lease and manage assets on behalf of governments while providing them with upfront payments.
One example is the Senegambia Bridge connecting Senegal and The Gambia. Under its agreement, Africa50 operates the bridge and collects tolls while assuming responsibility for maintenance and upgrades, alongside making lump-sum payments to the governments involved.
Moremong said the asset-management business could eventually represent between one-fifth and one-quarter of Africa50’s overall portfolio.
The strategy would give Africa50 a larger role across the infrastructure lifecycle, moving beyond project financing into the long-term operation and management of assets.
For Africa, the expansion of such investment models could become increasingly important as governments confront constrained public finances and declining traditional development funding. Scaling private and institutional capital into infrastructure will remain critical to closing the continent’s financing gap and supporting economic integration, industrialization and access to reliable energy.
