Presidents of Madagascar and Tanzania praise Africa50’s critical role in addressing the continent’s infrastructure challenges; Africa50 has mobilized over $1.1 billion in capital commitments and catalyzed an additional $4.4 billion in external financing in just seven years, Adesina.
Africa50, the investment platform established by African governments and the African Development Bank, is exceeding expectations and closing critical infrastructure funding gaps through innovative financing mechanisms and strategic partnerships, stakeholders heard on Thursday.
Speaking at Africa50’s 2024 annual General Shareholders Meeting held in Antananarivo, the President of Madagascar, Andry Rajoelina, and his Tanzanian counterpart, Samia Suluhu Hassan, acknowledged the institution’s pivotal role in addressing the continent’s infrastructure and economic challenges, creating a foundation for sustainable development and prosperity.
President Rajoelina highlighted how Africa50 is driving transformational change by mobilizing financing for large-scale infrastructure projects in his country and across the continent.
He said Madagascar, with its abundant natural and renewable resources, has become a model for energy transition, and added that the country needs the support of international partners such as Africa50.
“To realise our vision, we need the support of international partners, and this is where the role of Africa50 members is crucial. We need to work together to secure funding for ambitious projects and enable Madagascar to make the transition to green, sustainable energy. This is a challenge for the whole of Africa,” the president said.
He remarked that the continent has a unique opportunity to reaffirm itself as a global leader in the climate change challenge by supporting innovative and sustainable projects. “Africa is not the problem, Africa is a solution.”
President Samia Suluhu Hassan, in a speech read by the Minister of Finance and Planning, Mwigulu Lameck Nchemba Madelu, described clean cooking as an international agenda and a business that must be treated as such.
According to the International Energy Agency, nearly one billion people in Africa cook with polluting fuels, which has a direct impact on health and leads to half a million premature deaths every year. Yet, the cost of solving the clean energy problem is relatively low.
The Tanzanian leader encouraged the use of clean cooking microfinance by providing low-interest loans to households to purchase clean cookstoves, allowing for a more manageable transition to clean cooking solutions… “It is crucial to make clean cooking affordable, especially in low-income areas. Governments can introduce effective incentives for producers and consumers to reduce the cost of cooking materials,” the Tanzanian president said.
The meeting brought together global leaders, policymakers, investors, and infrastructure experts to strategize and collaborate on the actions needed to mobilize investment in a sustainable future for Africa.
“The fact that Africa50 is exceeding expectations and bridging the funding gap by tackling today’s challenges through innovative financing mechanisms and strategic partnerships is good news for Africa and the world,” President and Chairman of the Boards of Directors of the African Development Bank Group Dr. Akinwunmi Adesina said in a keynote speech at the event.
Adesina, who is also Chairman of the Africa50 Board of Directors, told the meeting that Africa50 has mobilized over $1.1 billion in capital commitments and catalyzed an additional $4.4 billion in external financing In just seven years of operation. “Its portfolio includes 25 transformative projects in 28 countries, with a total value exceeding $8 billion across energy, transport, digital infrastructure, education, and healthcare sectors.”
In December 2023, the Africa50 Infrastructure Acceleration Fund (IAF) secured $222.5 million at first close from predominantly African investors, a first for the continent.
Africa50’s vision for Africa’s future
With Africa’s population projected to reach 2.5 billion by 2050 and a booming consumer market, the continent will be one of the most sought-after investment destinations in the world, Adesina told the meeting, “We are determined to continue mobilizing capital, overcoming barriers to investment, and delivering transformative projects.”
In his remarks, Africa50 CEO Alain Ebobissé said over the past year, the institution had invested in key infrastructure projects, guided by the need for speed and scale in implementation for the continent. “Investors manage more than $2.3 trillion in Africa. Africa50 aims to mobilise and catalyse some of this capital to finance infrastructure in Africa,” he said.
He highlighted Africa50’s Infrastructure Acceleration Fund as an achievement that is the first of its kind in Africa.
“This fund is a significant step forward in mobilising African capital to bridge Africa’s infrastructure gap,” Ebobissé added.
In 2023, Africa50 demonstrated its potential by facilitating significant foreign direct investment in clean energy, even as global FDI declined by 3%.
With over 60% of the world’s solar energy potential, Africa has a golden opportunity to pursue a low-carbon energy trajectory, expand its electricity supply, and decarbonize its economies.
Madagascar, the world’s fourth-largest island nation, was cited as an example of how infrastructure development can stimulate economic growth.
The African Development Bank’s commitments in Madagascar total more than 1 billion dollars, with transport, energy, and agriculture accounting for more than 97% of the portfolio.
The flagship Sahofika project, which will be the benchmark for green baseload in the country’s energy mix, will reduce the share of thermal power generation to less than of thermal generation to less than 10%, cutting the country’s generation costs by more than 30%.
Transport infrastructure
The African Development Bank remains committed to supporting Madagascar in its efforts to improve connectivity and promote trade across the continent through sustainable transport infrastructure projects, Adesina said.
“Thanks to the corridor development and trade facilitation project, 165 km of roads, including the Analamisampy-Manja section, along with four bridges on the RN9, have been constructed, reducing travel time from 48 hours to just 5 hours,” Adesina said.
“Transport infrastructure improvements are also revolutionizing trade and travel, reducing travel times along key corridors from 48 hours to just five hours,” he added.
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