Business Model

Africa50 focuses on commercially sustainable projects. Africa50’s operations are carried out through two business lines:

  • Project Development: The primary objective of this segment is to increase the number of bankable infrastructure projects in Africa. This will be accomplished through substantially increased funding of early stage project development activities, made possible by innovative partnerships and incentive schemes.  Further, Africa50 will make skilled legal, technical and financial experts available to projects from an early stage of development, sharing costs with member governments and developers and recovering its funding at financial close or through a carried interest in the project.

  • Project Finance: This is the business line through which Africa50 will offer a full suite of financing products to support the African infrastructure sector. The ambition of Africa50 is to act as a “one-stop-shop” in order to provide a holistic solution to market failure. Project finance is a complex financing mechanism. It requires institutions that understand the entire value chain and that have the means and expertise to deal with blockages at all the relevant stages and able to navigate the currently fragmented African infrastructure market. This should ultimately accelerate the delivery of infrastructure investments. The risk profile of a project changes from the early-stage of development through preparation and construction to commercial operations. Instruments with greater risk profiles are required earlier in the cycle. By bringing these instruments together in one institution, Africa50 will be able to provide greater certainty at each stage of the financing chain.

Project Cycle and Products