The African Development Bank and Made in Africa Foundation officially launched the fundraising for the Africa50 infrastructure fund on Thursday, September 26 at the NASDAQ Stock Exchange in New York City.

The African Development Bank (AfDB) and Made in Africa Foundation (MIAF) have partnered to co-market initiatives that will catalyze funding for Africa's largest infrastructure delivery vehicle created to-date, Africa50.

With the critical objective of reducing the timing required to develop infrastructure projects in Africa, Africa50 is the result of experience and innovation. Over the past five years, AfDB has delivered over USD 5.4 billion in critical infrastructure investment in Africa through private sector and public-private partnership financing.

For its part, MIAF was born when internationally renowned Ghanaian-born designer Ozwald Boateng and leading Nigerian entrepreneur Kola Aluko of Atlantic Energy realized that a few hundred million dollars of investment in project development could change the course of economic development for the whole of Africa. The alliance between MIAF and AfDB aims to raise up to USD 500 million for Africa50's project development arm by the first half of 2014.

Africa50 will comprise two funding arms: Project Development and Project Financing. At a recent meeting of African Central Banks in Mauritius, AfDB President Donald Kaberuka explained that "to increase the rate of infrastructure delivery in Africa we need to speed up project preparation and project development. The critical objective is to shorten the time between the idea and financial close from a current average of seven years to less than three years."

Tas Anvaripour, Team Leader of Africa50, notes:

"African infrastructure projects are increasingly capturing the attention of investors worldwide. However, the number of bankable infrastructure projects brought to market is still insufficient, even though they offer an excellent way to diversify investment portfolios and steady, long-term, and above average returns."

AfDB has closed over 40 large infrastructure private sector projects in the past five years.

Source: AdDB