NSIA joins global investors to access $500m Africa50 infrastructure fund

The Nigerian Sovereign Investment Authority (NSIA), manager of Nigeria’s wealth fund, has partnered with other prominent African and global institutional investors in signing to the new $500 million Africa50 Infrastructure Acceleration Fund.

The fund is expected to catalyse further investment flows to the development of critical infrastructure across the African continent, including energy, transportation, telecommunications, and water, among other areas.

Business A.M gathered that this is the first private vehicle infrastructure platform launched by Africa50 and brings together a diverse group of influential stakeholders from Africa and beyond.

The initiative comprises 17 African shareholders,  including sovereign wealth funds, development finance institutions, banks, pension funds, asset managers, and retirement agencies and two international Institutional Investors. Other entities are expected to join the first transaction.

To affirm their interest, the shareholders signed subscription agreements and letters of intent to invest in the fund on July 3, during the Africa50 Infrastructure Forum and General Shareholders Meeting in  Lome,the capital city of Togo.

Speaking at the signing event, Akinwumi Adesina, the president of the African Development Bank (AfDB) and chair of the Africa50 board,  said, “This is impressive and a first for Africa. It is remarkable and unprecedented to have 17 African institutions participating in such a transforming initiative to invest in an African infrastructure fund.

Adesina explained that the fund places the Africa50 Group in a better position to play a lead role in helping to tap into the more than $98 trillion of global assets under management.

Aminu Umar-Sadiq, the chief executive officer and managing director of Nigeria Sovereign Investment Authority,remarked that his agency’s priority focus on sustainable infrastructure was consistent with its vision to contribute positively to Africa’s economic growth and development, including investing profitably, responsibly, and sustainably.

“The Nigeria Sovereign Wealth Fund has a clear mandate to bring development to Nigeria, and by extension the continent, and our investment in the Africa50 Infrastructure Acceleration Fund is an opportunity to increase our development impact in Africa while generating attractive financial returns,” he said.

On his part,Sidi Ould Tah,CEO of  Arab Bank for Economic Development in Africa, said: “Africa is a region with tremendous potential and a key priority for us, so we are delighted to join a credible partner like Africa50 in this groundbreaking partnership to scale up infrastructure development on the continent.”

Also speaking, Alain Ebobissé,Africa50 CEO,said securing commitments from such prominent African institutional investors marks the beginning of a new era of collaboration and investment in Africa’s infrastructure sector.

“This African-led initiative is a powerful demonstration of our shared vision to transform Africa’s infrastructure landscape. Together, we will catalyze African financial resources to lay the foundations for a better future, one that drives prosperity, job creation, and sustainable development for all Africans,” Ebobissé noted.

AfDB will invest $20 million in equity in the Africa50 Infrastructure Acceleration Fund and will see injections from other investors, including the International Finance Corporation (IFC), the Nigeria Sovereign Investment Authority (NSIA), the Arab Bank for Economic Development in Africa, the West African Development Bank, CDC Sénégal, CDC Benin, CNSS Togo, CDG Invest, and Attijariwafa Bank of Morocco.

ONOME AMUGE