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Zambia is set to benefit from the US$20 million investment in private equity fund approved by the African Development Bank (AfDB) targeting the infrastructure sector on the continent.
The Board of Directors of the AfDB Group has approved an equity investment of US$20 million in the Africa50 Infrastructure Acceleration Fund One, in support of its target to mobilise private capital for infrastructure across the continent.
AfDB in a statement on Monday stated that the Africa50 Infrastructure Acceleration Fund One is a pan-African infrastructure private equity fund that is mobilizing up to US$500 million for investment and value creation in strategic infrastructure sectors.
These include power, energy, digital and social infrastructure, transportation, logistics, and water and sanitation.
Commenting on the approval, Wale Shonibare, AfDB’s Director for Energy Financial Solutions, Policy and Regulations said the Bank’s support for the Africa50 Infrastructure Acceleration Fund One aligned with its High Five objectives.
“It also strengthens the Bank’s already existing partnerships with the Africa50 Group on initiatives such as the African Sovereign Investors Forum and the Alliance for Green Infrastructure in Africa,” Shonibare said.
Read more: AfDB approves $11.7 million for farmers to access fertiliser in Africa
AfDB Director for the Industrial and Trade Development Department, Abdu Mukhtar, said the bank prioritised investing in strategic infrastructure sectors that contributed to closing Africa’s infrastructure financing gap (estimated at US$68-108 billion annually).
“The Bank’s investment will support Africa50 to crowd-in private capital into African infrastructure through a private equity fund vehicle that private investors better understand and are more comfortable investing in,” Mukhtar said.
The fund is sponsored by Africa50, an infrastructure investment platform established by governments and the AfDB.
It is projected to create 3,278 full-time equivalent jobs over the period 2023-2035, including 1,676 jobs for women.
Meanwhile, Alain Ebobissé, Chief Executive Officer of the Africa50 Group, said: “We are highly appreciative of the African Development Bank’s support for the Africa50 Infrastructure Acceleration Fund One.
“We look forward to continuing to work collaboratively with the African Development Bank and other investors to make a meaningful contribution to improving the infrastructure landscape on the continent.”
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