Investment Platform Africa50 Honored for Groundbreaking Financing Methods and Strategic Partnerships
Tanzania's President Samia Suluhu Hassan and Madagascar's President Andry Rajoelina have highlighted the transformative impact of Africa50, an institution established by African governments and the African Development Bank. This institution, which has mobilized over $1.1 billion in capital commitments, is exceeding expectations by closing critical funding gaps for infrastructure through innovative financing mechanisms and strategic partnerships.
Africa50 boasts a portfolio of 25 transformative projects across 28 countries, with a total value exceeding $8 billion. These projects are in sectors such as energy, transport, digital infrastructure, education, and healthcare. The fund was predominantly invested by African investors, and Africa50 has catalyzed an additional $4.4 billion in external financing within just seven years.
One of the notable projects is the Sahofika project in Madagascar, which aims to reduce thermal power generation to below 10% and lower the country's generation costs by over 30%. Thanks to corridor development and trade facilitation projects, 165 km of roads and four bridges on the RN9 have been constructed in Madagascar, reducing travel time from 48 hours to just five hours.
President Hassan characterized clean cooking as an international agenda and urged the promotion of clean cooking microfinance options. She recommended low-interest loans for households to purchase clean cookstoves, thus easing the transition to clean cooking solutions. This emphasis on clean cooking aligns with Africa's potential to harness more than 60% of the world's solar energy, offering a remarkable opportunity to pursue a low-carbon energy pathway.
The African Development Bank is dedicated to aiding Madagascar in enhancing connectivity and promoting trade across the continent through sustainable transport infrastructure projects. With African Development Bank commitments exceeding $1 billion, Madagascar is an example of how infrastructure development can drive economic growth.
The Africa50 Infrastructure Acceleration Fund is a notable achievement, representing the first of its kind in Africa. In December 2023, the Africa50 Infrastructure Acceleration Fund achieved a first close of $222.5 million, marking a first for the continent. Investors manage more than $2.3 trillion in Africa, and Africa50 aims to mobilize and catalyze some of this capital to finance infrastructure in Africa.
Despite the available search results not containing information about which countries participated in the founding of Africa50, it is clear that this institution is playing a crucial role in Africa's infrastructure development. Africa50 is committed to continuing to mobilize capital and deliver transformative projects, making it one of the most attractive investment destinations globally as Africa's population is projected to reach 2.5 billion by 2050.
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