The Africa50Fund

Tunis, Tunisia June, 2013 1

For Africa and by Africa

2012 PIDA Declaration by African Leaders

Africa50Fund

Unlocking private financing and accelerating the speed of infrastructure delivery in

Africa

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Africa50Fund

An Innovative Solution

Africa50Fund

An Innovative Solution

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Project Development: Addressing Bankability Project Finance: Leveraging Existing Financing Tools

Africa50Fund

Funding

Sovereign Wealth Funds, Central Banks, Pension Funds

AfDB

Regional Member Countries (ADF + MIC’s)

BONDS

EQUITY

+

Ris

k

–

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Ret

urn

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Africa50Fund

Leveraging Effect

SWF, CBs,

Pension Funds

AfDB

Regional Member Countries (ADF +MIC’s)

BONDS

EQUITY

LEVERAGE

Approximately 10 times

+ R

isk

–

+ R

etu

rn

–

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Making it Happen…

Total Commitment of USD 10 billion

Initial Drawdown USD 3 billion

Second Drawdown USD 7 billion

Total Infrastructure Projects Delivered: USD 100 billion

Africa50Fund

Equity

Africa50Fund

Why the Fund ?

Enables the delivery of large scale transformative infrastructure projects in Low Income Countries that will not happen otherwise.

Strong African participation and buy-in from inception: LICs through the ADF and MICs through their own direct equity stakes commitment sends strong signal to market

Clear demonstrational effect that will promote Africa as an attractive investment proposition, through reduced risk premiums ( currently 10-15% vs. other regions)

Benefits

Project financing will revolve faster as completed projects could potentially be sold off to free up resources for near term investments

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Africa50Fund

Complementarities with the Private Sector Facility

Africa50Fund Private Sector Facility

Exclusive focus on transformational large scale infrastructure projects

Focus on small to medium scale projects in all sectors (Infrastructure, Industrial, SME Finance, Agriculture)

Regional focus Dedicated to LIC’s

Develop projects to the point of bankability, arrange and participate in their financing

Investing in development results through the private sector by leveraging the Bank’s Private Sector Operation capability

Phased capacity build-up Immediate implementation

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Africa50Fund

Supporting transformation in Africa…some project examples

Abu Rawash Waste-Water 1.2 million m3/day

Abidjan-Lagos Corridor Approx. 670 km

Kinshasa-Brazzaville Road/Rail Project & Construction of a 1,015km rail between Kinshasa and IIebo in DRC

Inga III Hydropower 4,000 MW + 3,800 Km T-line

Mpanda Nkuwa Hydropower Mozambique & South Africa 1,500 MW + 1,340 Km T-line

Dar es Salaam-Isaka- Kigali-Musongati Rail – 1,660 Km

BLUE – 14 ADB Countries

GREEN – 39 ADF Only

RED – ADF Fragile States – 17

Ruzizi III Hydro Project DRC & Rwanda - 147MW

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Africa50Fund

Structure

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Independent Agile and flexible vehicle Own governance and capital structure

1. Information Memorandum

2. Project Teasers

1. Roadshow 2. Board Discussion

1. Legal Work

2. Business Plan and Budget

1. Board Presentation

2. Shareholder Agreement Negotiation

1. Investor Commitments

Africa50Fund

2013 Roadmap

June

July

August

September

Q4 / Q1 2014

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Africa50Fund

Deputies are invited to provide their

views on the Africa50Fund proposals

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A winning partnership…

Africa50Fund

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