Africa50, the pan-African infrastructure investor and asset manager, has secured $71 million in commitments for a fund focused on expanding decentralized renewable energy across Africa.

The commitments, announced Wednesday, Sept. 2, came from the International Solar Alliance, the Nigeria Sovereign Investment Authority and the World Bank Group. Africa50 also signed the fund’s partnership agreement as it works toward a final target of $200 million.

The fund will provide equity financing to companies working in mini-grids, standalone solar systems, commercial and industrial solar, clean cooking and electric mobility. The Nigeria Sovereign Investment Authority confirmed its participation but did not disclose the amount of its commitment.

Fund targets decentralized energy

The new fund comes as African energy companies face a persistent shortage of equity capital needed to expand their operations.

Africa50 and its partners launched a separate Nigeria-focused initiative in March 2025, targeting $500 million for decentralized renewable-energy projects in the country. That fund, co-managed by Africa50 and the NSIA, was expected to draw catalytic capital from the broader Africa-focused vehicle now being established.

The need for such financing is significant. The International Energy Agency said in its report, Financing Electricity Access in Africa, that limited access to suitable financing remains a constraint for companies developing and expanding mini-grids and solar home systems.

The IEA estimates that Africa will need about $5 billion a year in investment for mini-grids and another $3 billion for solar home systems to achieve universal electricity access in sub-Saharan Africa by 2035.

Africa50’s fund is aimed at helping companies bridge that financing gap and bring decentralized power systems to more households and businesses.

Africa50 expands infrastructure reach

Africa50 develops, finances and delivers infrastructure projects across the continent. In about eight years of operations, it has invested in 33 projects across 32 African countries, with a combined value of more than $8 billion.

Its investments cover energy, transport and digital infrastructure, while its project development and financing operations focus on turning large infrastructure opportunities into projects that can attract private capital.

The renewable-energy fund is part of a broader push by Africa50 to bring more institutional and private investment into African infrastructure.

BII commits $20 million to Africa50 fund

In August, Africa50 announced new investments and partnerships with British International Investment, TAQA Arabia and TANESCO at the Infra for Africa Forum 2026.

British International Investment committed $20 million to Africa50’s Infrastructure Acceleration Fund, becoming its latest limited partner and lifting total commitments to about $330 million.

BII also signed a memorandum of understanding with Africa50 to strengthen cooperation and identify opportunities for co-investment and capital mobilization across African infrastructure.