Egypt has doubled its commitment to Africa50 Infrastructure Fund to US$200 million, senior banking sources with knowledge of the matter told Amwal Al Ghad Tuesday.
The fund was launched in 2014 by Africa’s largest development lender, the African Development Bank (AfDB) aiming to help the continent in delivering vital infrastructure through a new global partnership platform.
Egypt has recently pumped around US$100 million into Africa50, representing 50 percent of its stake in the fund, the source said, adding that the North African country will inject the remaining portion in the coming period.
Africa50 has been structured as an independent, profit-driven, commercially managed entity dedicated exclusively to Africa’s infrastructure opportunities. The AfDB seeks to attract an initial US$3 billion in equity capital for the fund.
The initial capital of Africa50 Fund is at value of US$3 billion, to be scaled up to at least US$10 billion through the participation of African governments, international financial institutions, insurers, African tycoons, and sovereign funds.
Furthermore, some 20 countries, including Egypt, in addition to the Asian Development Bank (ADB) had so far approved to contribute around US$1 billion to Africa 50 Fund’s equity fund.
The AfDB invests US$500 million in the fund’s capital.
In August 2014, Casablanca was selected to be Africa50’s headquarters after evaluating offers of 9 countries.
The AfDB source further said the fund aims to accelerate the speed of infrastructure delivery in Africa, thereby creating a new platform for Africa’s growth.
Africa50 will focus on high-impact national and regional projects in the energy, transport, ICT and water sectors.
A high-profile delegation from AfDB had met with Egyptian government officials during the period from June 7-17, 2015 in Cairo, to discuss reaching a country strategy agreement that would cover the period 2015-2020.
Since its establishment in 1964, the African Development Bank Group, a AAA rated institution with an authorized capital of US $100 billion, has committed some US$95 billion to support approximately 4,000 development projects and programmes on the continent.