British International Investment (BII), the UK’s development finance institution, has committed $20 million to Africa50 Infrastructure Acceleration Fund as investors seek to channel more private capital into the continent’s infrastructure needs.

The investment takes the fund to a fourth close of about $330 million, with backing from the African Development Bank, the International Finance Corporation and more than 20 African institutional investors.

The fund targets infrastructure projects and investment platforms across sectors including power and energy, water and sanitation, transport and logistics, as well as digital and social infrastructure.

BII targets Africa’s infrastructure gap

“Africa’s infrastructure financing gap remains one of the biggest barriers to sustainable growth and development across the continent,” Leslie Maasdorp, CEO of British International Investment, said.

“Our investment in the Africa50 Infrastructure Acceleration Fund reflects our commitment to mobilising more capital into the infrastructure Africa needs to support businesses, create jobs and improve lives,” he said.

Africa continues to face a large financing shortfall for infrastructure, making long-term institutional funding important for projects that can take years to develop and generate returns.

For Africa50 CEO Alain Ebobissé, partnerships with institutional investors will be critical to getting more projects off the ground.

“Delivering infrastructure at the speed and scale the continent requires depends on mobilising long-term private and institutional capital through strong partnerships,” Ebobissé said.

BII’s investment, he said, supports the shared goal of increasing infrastructure investment, improving project delivery and supporting economic development across Africa.

Africa50 expands infrastructure portfolio

Africa50 is a pan-African infrastructure investor and asset manager that develops, finances and delivers projects across the continent. In about eight years of operations, the group has invested in 33 projects across 32 countries, with an aggregate value of more than $8 billion.

Its investments span energy, transport and digital infrastructure, while its project development and financing capabilities are designed to help turn infrastructure opportunities into investment-ready projects.

Africa50 currently has 38 shareholders, including 33 African countries, the African Development Bank, the Central Bank of West African States, Bank Al-Maghrib, the Public Investment Corporation and African Reinsurance Corporation.

The Africa50 Infrastructure Acceleration Fund is a 12-year closed-end private equity vehicle sponsored by Africa50. It has mobilized over $300 million from 24 institutional investors and has a target of $500 million for later-stage infrastructure investments.

BII expands financing across Africa

The latest commitment comes as BII increases its financing activity across African markets. In May, Ecobank DRC secured a $30 million risk-sharing facility from BII to expand lending to small and medium-sized businesses in the Democratic Republic of Congo.

BII invests long-term capital across Africa, Asia and the Caribbean, with a focus on supporting sustainable development and private-sector growth.