A letter of intent to work together on creating environmentally friendly and climate resilient infrastructure projects across Africa has been signed by the African Development Bank, Africa50, and the Africa Sovereign Investors Forum (ASIF).
The three organizations will collaborate to boost funding and promote the growth of knowledge and skills in the infrastructure sector.
On June 20, 2022, in Rabat, Morocco, at a gathering to inaugurate the Africa Sovereign Investors Forum, the signing took place.
Ten African sovereign investors agreed to establish the Forum under the high patronage of His Majesty King Mohammed VI of the Kingdom of Morocco.
The recently established platform will streamline efforts to gather cautious funding for the continent’s development.
The signatories are Agaciro Development Fund of Rwanda (www.Agaciro.rw), Fonds Souverain de Djibouti, Fonds Gabonais d’Investissements Stratégiques (FGIS), Fonds Souverain d’Investissements Stratégiques (FONSIS) of Senegal, Fundo Soberano de Angola (FSDEA), Ghana Infrastructure Investment
Alain Ebobissé, CEO of Africa50, signed on for his group. Solomon Quaynor, vice president of the African Development Bank for the private sector, infrastructure, and industrialization, and Obaid Amrane, chief executive officer of Ithmar Capital and inaugural chair of ASIF, respectively, signed on behalf of the two institutions.
“This is a crucial step toward fostering strong collaboration between the appropriate parties to address the significant infrastructure funding needs of Africa,” said Ebobissé.
The signing of today’s agreement will significantly help to solve the continent’s infrastructure deficit by helping to make important regional infrastructure projects appealing and bankable for both international and African private investors.
Therefore, it is crucial that we take advantage of the power of the continent’s sovereign wealth funds, which are in charge of managing sizable domestic savings, in order to propel the development of Africa’s economy through the creation and effective execution of key infrastructure.
The partnership between the African Development Bank and ASIF and Africa50, according to Quaynor, “would enable stronger collaborations on project development and co-financing, capital mobilization to fund resilient, green, and sustainable infrastructure, and identification of investment opportunities to promote Africa’s infrastructure and industrialization.”
This is a crucial component of the Bank’s plan to use the estimated $2 trillion in assets under management from institutional investors in Africa, including sovereign wealth funds, pension funds, and insurance companies, for the development of the continent’s industrialization and infrastructure, he said.
Amrane stated, “ASIF’s primary goals are to raise patient capital and hasten the development of investment possibilities. As sovereign investors, we see tremendous synergies with the African Development Bank and Africa50, especially given that our goals are similar in terms of project planning and funding.
As a result of our shared desire to promote investment in climate resilient projects, among other things, in accordance with our respective mandates, we are happy to formally announce our collaboration with ASIF, AfDB, and Africa50 today.
The collaborative agreement will also attempt to handle project planning and identification, which is a crucial aspect of successfully attracting funding for any project.