Africa50 Eyes Huge Off-grid Energy Investment

The new funds at the investor, whose shareholders include the African Development Bank and Morocco's central bank, come amid a drive by regional governments to boost access to electricity and shield against the impact of adverse weather caused by climate change. The World Bank and AfDB last month convened a conference to give momentum to a programme to bring power to 300 million Africans by 2030.

The Alliance for Green Infrastructure in Africa fund will be the first of the new funds, Africa50 CEO Alain Ebobisse said in an interview at a conference in Tanzania. It will comprise a 400-million component for project development, another 100-million for project preparation, and will target sectors ranging from renewable energy to transport that limits greenhouse-gas emissions.

With such a fund, "you can catalyse 10-billion worth of investments", he said. "The first close will be in the first half of the year."

Separately, Casablanca-based Africa50 is setting up a 200-million fund to invest in companies providing so-called distributed renewable energy such as solar-powered mini-grids and home systems. The International Solar Alliance will sponsor the new fund, known as the Africa Solar Facility.

Africa50 is also planning a Nigeria-focused fund for distributed renewable energy with the Nigerian Sovereign Investment Authority and the United Nations-backed Sustainable Energy For All, though the partners have yet to decide its size.