Africa50, the pan-African infrastructure investment platform, announced the creation of a 500 million dollar (31.9 billion meticals) fund for the development of renewable energy projects and sustainable infrastructure in Africa. Mozambique is among the countries that could benefit from this initiative, which aims to increase access to electricity and promote the energy transition on the continent, according to Engineering News.
The investment comes in the context of growing demand for sustainable energy solutions and efforts by African authorities to expand electrification, especially in remote areas.
According to Africa50, the new fund – called the Africa Green Infrastructure Fund – will consist of 400 million dollars (25.5 billion meticals) for project development and 100 million dollars (approximately 6.4 billion meticals) for project preparation, covering renewable energy, sustainable transport and digitalisation.
According to Alain Ebobisse, executive director of Africa50, the impact of this fund could mobilise up to 10 billion dollars (639 billion meticals) in additional investments. ‘The first closing of the fund should take place in the first half of the year,’ said Ebobisse at a conference in Tanzania.
In addition to the 500 million dollar fund, Africa50 is creating a second fund of 200 million dollars (12.8 billion meticals) focused on the development of decentralised renewable energy.
This initiative will support solutions such as solar mini-grids and autonomous systems for homes and businesses, enabling the electrification of isolated communities. The fund, called the Africa Solar Facility, will be sponsored by the International Solar Alliance and aims to promote energy solutions that do not depend on the traditional electricity grid.
‘In addition to the 500 million dollar fund, Africa50 is creating a second fund, worth 200 million dollars (12.8 billion meticals), focused on the development of decentralised renewable energy’
Africa50 is also involved in modernising and expanding the electricity transmission network on the continent. The organisation is about to conclude the financing of the first large-scale public-private partnership for electricity transmission lines in Africa, a project between the Power Grid Corporation of India and the Government of Kenya.
In addition, memoranda of understanding have been signed for similar projects in Mozambique, Tanzania and Gabon, consolidating the commitment to sustainable electrification in the region.
Africa50 currently manages three main funds: Africa50-Project Development, Africa50-Project Finance and Africa50 Infrastructure Acceleration Fund. These funds have attracted capital from 16 African institutional investors, including sovereign wealth funds and commercial banks, as well as support from the International Finance Corporation (IFC) and the African Development Bank (AfDB).
In the last seven years, Africa50 has invested in 28 projects spread across 27 African countries, and currently has 1.1 billion dollars (70.2 billion meticals) in assets under management.
The institution aims to mobilise new financial resources from African investors, who, according to Ebobisse, have 2.3 billion dollars (147.8 billion meticals) in capital available for strategic projects on the continent.
With the launch of this new fund, Mozambique will be able to benefit from investments to expand the electricity grid and develop renewable energy solutions, reinforcing its commitment to sustainability and the transition to clean energy sources.
Negotiations between the partners involved and the Mozambican authorities should define the concrete impact of this funding on the national energy infrastructure in the coming months.
