In a major push to accelerate Africa’s transition to renewable energy and reduce its reliance on fossil fuels, Africa50, a pan-African infrastructure investment platform, is set to launch a groundbreaking $500 million fund.

This innovative financing vehicle will be dedicated to supporting off-grid power companies and climate-friendly projects across the continent.

The initiative, backed by heavyweight shareholders including the African Development Bank (AfDB) and Morocco’s central bank, aligns with regional governments’ efforts to expand electricity access and mitigate the devastating impacts of climate change-induced weather disruptions.

At the heart of this ambitious plan is the Alliance for Green Infrastructure in Africa (AGIA) Fund, which will spearhead project financing in renewable energy and low-carbon transport solutions.

Africa50’s Chief Executive Officer, Alain Ebobisse, revealed that the fund will allocate $400 million towards project development and an additional $100 million for project preparation.

This strategic investment is expected to catalyze a staggering $10 billion worth of investments in sustainable infrastructure across Africa. As Ebobisse noted, “The first close will be in the first half of the year.”

In a parallel effort, Africa50 is establishing a $200 million Distributed Renewable Energy Fund to finance companies involved in solar-powered mini-grids and home systems.

This initiative, sponsored by the International Solar Alliance, aims to expand access to decentralized, clean energy solutions.

Furthermore, Africa50 is collaborating with the Nigerian Sovereign Investment Authority (NSIA) and the United Nations-backed Sustainable Energy for All (SEforALL) to launch a Nigeria-focused fund for distributed renewable energy.

While the final size of the fund is yet to be determined, it is expected to play a critical role in bridging Nigeria’s energy access gap.

Africa50’s commitment to sustainable development and climate action is evident in its partnership with the International Renewable Energy Agency (IRENA).

In 2024, Africa50 announced that it would invest up to $100 million in renewables-based energy transition projects and infrastructure across Africa through IRENA’s Energy Transition Accelerator Financing (ETAF) platform.

As IRENA’s Director-General, Francesco La Camera, emphasized, “Renewables represent the most effective, climate-safe solution available, and this partnership with Africa50 will be pivotal in strengthening the ETAF Platform’s impact across Africa.”