Africa50, a pan-African infrastructure investment platform, is set to launch a $500 million fund to support off-grid power companies and drive climate-friendly energy projects across the continent. The initiative, backed by key shareholders including the African Development Bank (AfDB) and Morocco’s central bank, aims to accelerate electricity access in underserved regions while addressing the challenges posed by climate change.
This move comes at a crucial time when regional governments and development organizations are ramping up efforts to improve energy security and reduce the impact of climate-induced disruptions. The World Bank and AfDB recently convened a high-level conference in Tanzania, setting ambitious targets to bring electricity to 300 million Africans by 2030. Africa50’s latest initiative aligns with this broader goal by ensuring that more communities, especially in remote areas, have access to reliable and sustainable energy sources.
Speaking at the Tanzania conference, Africa50’s Chief Executive Officer, Alain Ebobisse, outlined the strategic importance of the new fund in driving large-scale investments into Africa’s renewable energy sector. According to him, $400 million of the fund will be allocated to project development, while an additional $100 million will go toward project preparation. Ebobisse emphasized that with such a structure, the fund could catalyze up to $10 billion in total investments for energy projects across the continent.
“The first close will be in the first half of the year,” he stated, highlighting the urgency of unlocking more capital for Africa’s energy transition.
A key component of the initiative is the Alliance for Green Infrastructure in Africa (AGIA) Fund, which will spearhead financing efforts in renewable energy and low-carbon transportation solutions. By creating a dedicated funding mechanism for green infrastructure, Africa50 aims to bridge the financing gap that has long hindered the development of clean energy projects in Africa.
Beyond large-scale projects, Africa50 is also taking steps to accelerate the adoption of decentralized renewable energy solutions. The organization is launching a $200 million Distributed Renewable Energy Fund, which will provide financing for companies involved in solar-powered mini-grids, home solar systems, and other decentralized energy solutions.
This initiative, known as the Africa Solar Facility, is being sponsored by the International Solar Alliance. Its goal is to enhance energy access for millions of people by supporting businesses that develop and deploy distributed renewable energy technologies. By focusing on solar-powered solutions, Africa50 aims to provide cleaner, more affordable alternatives to traditional fossil-fuel-based power sources, which remain out of reach for many households and businesses across the continent.
In addition to the Africa Solar Facility, Africa50 is working with the Nigerian Sovereign Investment Authority (NSIA) and the United Nations-backed Sustainable Energy for All (SEforALL) to launch a Nigeria-focused fund dedicated to distributed renewable energy projects. While the final size of this fund is yet to be determined, it is expected to play a significant role in addressing Nigeria’s persistent energy deficit. With over 85 million Nigerians still lacking access to electricity, such targeted investments are essential to bridging the country’s energy gap and fostering economic development.
Africa50’s latest efforts build upon its broader commitment to supporting Africa’s energy transition. In 2024, the organization announced plans to invest up to $100 million in renewable energy projects through the International Renewable Energy Agency’s (IRENA) Energy Transition Accelerator Financing (ETAF) platform. This funding will be used to co-finance clean energy initiatives and scale up infrastructure projects that support Africa’s shift toward sustainable energy.
IRENA’s Director-General, Francesco La Camera, recently warned that global progress toward universal electricity access is slowing, with Sub-Saharan Africa bearing the brunt of the crisis. “For the first time in a decade, the most recent data show that the number of people without access to electricity has increased significantly,” he noted. He stressed that renewables remain the most effective and climate-resilient solution to this challenge.
“With Sub-Saharan Africa representing the majority of those impacted, we must be diligent and committed to urgently addressing this growing issue,” La Camera stated. “This partnership with Africa50 will be pivotal in strengthening the ETAF platform’s impact across Africa.”
The launch of Africa50’s $500 million fund represents a significant milestone in the continent’s energy transformation journey. By mobilizing investments for off-grid power solutions and distributed renewable energy projects, the initiative is expected to accelerate electrification efforts and enhance energy security in Africa.
Moreover, the fund’s focus on green infrastructure aligns with global climate goals and Africa’s broader commitment to reducing carbon emissions. As the region continues to grapple with the effects of climate change, investments in clean energy will play a crucial role in building resilience and ensuring sustainable economic growth.
With the first close of the fund expected in the coming months, Africa50’s initiative could set the stage for increased private-sector participation in Africa’s energy sector. By providing the necessary capital and support for renewable energy projects, the fund has the potential to drive long-term, transformative change—bringing power to millions and fueling Africa’s sustainable development.
