In a bold move to bridge Africa’s energy gap and accelerate the continent’s green transition, Africa50 is set to launch a $500 million investment fund to scale up off-grid power and sustainable infrastructure. 

The initiative is poised to unlock billions in climate-friendly investments, offering a game-changing boost to Africa’s renewable energy sector. With the backing of key institutions like the African Development Bank (AfDB) and Morocco’s central bank, the fund is part of a larger strategy to expand electricity access while mitigating the devastating effects of climate change. 

Africa50 CEO, Alain Ebobisse, emphasized the fund’s potential, stating that with a solid financial structure in place, it could catalyze up to $10 billion in investments, significantly accelerating the development of sustainable energy projects.

The Africa Green Infrastructure Alliance (AGIA) Fund, a crucial pillar of this initiative, will focus on financing renewable energy projects and low-carbon transport solutions. Of the $500 million, $400 million will go directly into project development, while $100 million will support early-stage project preparation. The first round of funding is expected to close in the first half of this year.

Alongside this, Africa50 spearheads a $200 million Distributed Renewable Energy Fund, dedicated to supporting companies deploying solar-powered mini-grids and home energy systems. Sponsored by the International Solar Alliance, this effort dubbed the Africa Solar Facility aims to drive the adoption of decentralized clean energy solutions, particularly in underserved regions.

Nigeria is also set to benefit from Africa50’s efforts, as the platform partners with the Nigerian Sovereign Investment Authority (NSIA) and Sustainable Energy for All (SEforALL) to establish a fund dedicated to distributed renewable energy. The final size of this Nigeria-focused fund is yet to be determined, but it is expected to play a critical role in closing the country’s energy access gap.

Africa50’s investment push comes amid growing concerns over rising energy poverty in Africa. According to the International Renewable Energy Agency (IRENA), the number of people without access to electricity has increased for the first time in a decade, with Sub-Saharan Africa bearing the brunt of the crisis. 

Francesco La Camera, IRENA’s Director-General, highlighted the urgent need for investment in renewables, calling them the “most effective, climate-safe solution” to Africa’s energy challenges.

To further support the continent’s transition, Africa50 has committed up to $100 million to co-finance renewable energy projects through IRENA’s Energy Transition Accelerator Financing (ETAF) platform. This reinforces the growing momentum behind sustainable development efforts across Africa.