Egypt has approved to invest US$100 million to Africa50 Infrastructure Fund’s equity capital, a government source 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.
During its meeting with the AfDB official delegation in Cairo this month, the government had informed the bank of its contribution to the fund’s capital, the source said.
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.
Meanwhile, a senior source from the AfDB said some 15 development entities and governments, including Egypt, so far had approved to contribute around US$600 million 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.