Africa50 and the Government of Madagascar catalyze infrastructure investment at General Shareholders Meeting (GSM) in Antananarivo
Antananarivo, Madagascar - 23 September 2024 - Africa50, and the Government of the Republic of Madagascar convened global leaders, impact investors, policy makers, project developers and Africa50’s shareholders, to outline a roadmap to unlock the capital and collaboration required to plug Africa’s infrastructure gap.
The anticipated event leveraged the rising momentum in Africa’s infrastructure sector as the asset class becomes more attractive to investors in search of bankable projects, impact, and returns. The agenda showcased various untapped investment opportunities across Africa and Madagascar - a country with 7.8 GW hydrolectric potential along with strong wind and solar capacity, as well as public-private partnerships (PPPs) that stimulate green growth.
In his presidential address, H.E. Andry Rajoelina, President of the Republic of Madagascar, underscored the role of regional and international collaboration to build a pipeline of renewable energy projects in Madagascar and Africa: “To achieve our economic transformation, Madagascar needs the commitment of our international partners. Institutions like Africa50 are crucial in this process, by providing the necessary funding and support to build a better future”.
Hon. Rindra Hasimbelo Rabarinirinarison, Minister of Economy and Finance, Republic of Madagascar urged investors to double down on efforts to develop sustainable infrastructure in Africa at scale, highlighting reforms that shape strategic sectors in Madagascar's economy such as sustainable mining, logistics, renewable energy, telecommunications and agriculture. Hon. Rindra Hasimbelo Rabarinirinarison said: “Efforts by the government, such as the new mining code, the code of investment and the new regulations for public investment will help us to attract more private investment”.
Dr. Akinwumi Adesina, President of the African Development Bank (AfDB) and Africa50 Board Chairman, paid tribute to Madagascar and the government’s ambition to champion the rise of climate-resilient infrastructure, expressing optimism about the increasing role of hydropower in diversifying the country’s energy mix: “Once the 120 MW Volobe hydropower plant in Madagascar is completed it will contribute to an increase of 20% of energy in the country and provide reliable and affordable energy for more than 2 million citizens.”
During the ceremony, the U.S. International Development Finance Corporation (DFC) approved technical assistance funding to support the development of the pioneering hydropower project. The European Union also signed a Letter of Intent to supply Volobe with concessional loans. These two significant commitments, announced on the sidelines of the GSM, are critical to expediting the project's development, bringing it closer to financial close.
Speaking in a video message, Dr. Victoria Kwakwa, Regional Vice President for Eastern and Southern Africa, The World Bank, said: “Volobe is poised to play a transformative role in reducing the cost of energy and contributing to the overall stability of Madagascar’s energy sector. The World Bank is ready to collaborate with the Government of Madagascar, Africa50, the International Finance Corporation (IFC) and other stakeholders to ensure that the project not only comes to fruition but also serves as a catalyst for broader economic development”.
Mr. Alain Ebobissé, CEO, Africa50, outlined the milestones the Africa50 has achieved since the last GSM, several “firsts” in Africa include: The successful $222.5 million first close of the Infrastructure Acceleration Fund (IAF), with predominantly African investors; Africa’s first transmission line public-private partnership (PPP) in Kenya and the region’s first asset recycling transaction with the Government of The Gambia, the Senegambia Bridge”.
Africa50’s portfolio includes 25 transformative projects across 28 countries, with a total value exceeding $8 billion across energy transport, digital infrastructure, education, and healthcare.
Alain Ebobissé said: “As an organization we seek to deliver on our mandate of developing bankable infrastructure, accelerating investment into infrastructure and mobilizing capital for Africa and global growth. We are a long term partner with our governments and the private sector to address the significant infrastructure financing gap on the continent and critically support their economic development plans”.
During a panel session entitled, ‘The role of Natural Gas in the energy transition including Clean Cooking Fuel, speakers discussed the important role natural gas plays as a transition fuel to grant African countries the fiscal space needed to invest in renewable technologies that improve productivity and wellbeing. The discussion also focussed on natural gas as an effective replacement for traditional cooking fuel such as charcoal, kerosene and wood which exacerbate deforestation, increase greenhouse gas emissions and create harmful fumes.
Mr. Lewnis Boudaoui, Senior Country Manager, East and Southern Africa, Public Sector Operations, the OPEC Fund for International Development, said: “The private sector is absolutely essential. The last thing we want to do is provide funding for something that is not sustainable. The private sector has to be involved to make clean cooking initiatives viable financially”.
In a clear sign of progressive action, Africa50, the AfDB, the OPEC Fund for International Development and the Government of Madagascar signed a Letter of Intent (LoI) to scale up the production capacity of bioethanol in Madagascar - a major step towards making clean and safe cooking a reality for millions of people across the country. The partners intend to support the uptake of the clean cooking fuel through the construction and improvement of production infrastructure and the strengthening of supply chains to increase downstream distribution capacity and facilitate accessibility and availability for consumers.
Notes to editors
Photo credit: Africa50
Description: Group photo during the opening ceremony
Media pack
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About Africa50
Africa50 is an infrastructure investor and asset manager that contributes to Africa's growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact. Africa50 currently has 35 shareholders, comprised of 32 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib. For more information, visit: www.africa50.com
Contact
Nana Boakye-Yiadom
n.boakyeyiadom.africa50.com
About the African Development Bank Group
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic
development and the social progress of its 54 regional member states. For more information:
www.AfDB.org
Contact
media@afdb.org
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. Established in 1976, to date, the OPEC Fund has committed about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion.
Contact
Communication@opecfund.org
About the World Bank Group
The World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: The World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development.
Contact
press@worldbank.org
Category: Press Release