Podcast Summary: This Week in Global Development

Episode: Paving the way: How Africa50 is driving infrastructure development forward
Release Date: November 11, 2024
Host: Kate Warren (Devex Executive VP & Executive Editor)
Guest: Alain Ebobissé (CEO, Africa50)

Episode Overview

This special episode, recorded during the World Bank-IMF annual meetings in Washington D.C., spotlights Africa50—a pan-African infrastructure investment platform. The conversation dives into how Africa50 is addressing Africa’s significant infrastructure gap, innovative financing approaches, partnerships, sector priorities, the balance between development and climate objectives, and the urgent need for action in the region’s infrastructure development. It also discusses the broader context of global development, touching on lessons for leaders just before COP29.

Key Discussion Points and Insights

1. Introduction to Africa50

Timestamps: 01:19–02:35

• Africa50’s Mandate:

  • Created to bridge Africa’s infrastructure gap by catalyzing private investment and public-private partnerships.
  • Focuses on equity, quasi-equity, and project development to build a pipeline of bankable projects.
  • Has invested in 26 projects across 29 countries with a total project cost exceeding $8 billion within seven years.

• Quote:

  “Our goal is really to have a lot more pipeline of bankable infrastructure project in Africa and in so doing attract more private investment to try to bridge the infrastructure gap.”
  – Alain Ebobissé [01:37]

2. Innovation and Speed in Execution

Timestamps: 02:44–06:06

• Challenges Addressed:

  • Lack of bankable projects is a key barrier for investors eager to invest in Africa.
  • Africa50 focuses on building a pipeline and executing faster than traditional development institutions.

• Innovative Approaches:

  • First to complete an asset recycling transaction in Africa (Senegambia Bridge in The Gambia).
  • Pioneering power transmission PPPs (e.g., current project in Kenya).

• Quote:

  “We wanted to demonstrate, and we believe we are demonstrating, that we can do things faster without necessarily compromising quality…”
  – Alain Ebobissé [03:19]

  “We are the first institutions to complete an asset recycling transaction in Africa… Essentially monetizing an asset to allow the government a bit more investment capacity.”
  – Alain Ebobissé [04:28]

3. Role and Power of Partnerships

Timestamps: 06:06–08:37

• Collaborations:

  • Key partners include African Development Bank (AfDB), World Bank Group, IFC, private sector sponsors.
  • Africa50’s Infrastructure Acceleration Fund: secured $500 million (first close) from 16 African institutional investors—emphasizing mobilizing local capital.

• Quote:

  “There’s a lot of money in Africa managed by African investors that we have to figure out a way to mobilize to channel those funds into African infrastructure.”
  – Alain Ebobissé [07:29]

4. Prioritizing Projects and Sectors

Timestamps: 08:37–10:34

• Strategic Focus:

  • Sectors: Power (especially renewables), transport, ICT, midstream gas; expanded to health, education infrastructure, and fintech post-COVID.
  • Prioritizes projects with a reasonable path to financial close and commercial operations, generally in the $300m to $1b size range.

• Quote:

  “First do a few things and do them well and then expand. ... We cannot do it all.”
  – Alain Ebobissé [08:48]

5. Balancing Green Energy Investments and Development Urgency

Timestamps: 11:44–14:14

• Energy Strategy:

  • Dual objective: fighting climate change and meeting development needs.
  • Strong emphasis on renewables, with gas as a transition and baseload fuel.
  • Need for balanced energy mix acknowledging pressing job creation needs.

• Quote:

  “In the energy space, that means we have a strong focus on developing renewable projects… but we are also doing gas as a transition fuel.”
  – Alain Ebobissé [12:07]

  “Development priorities are very important for us. So this is what we're doing. So trade-offs for us: we do both.”
  – Alain Ebobissé [13:12]

6. Distributed Renewable Energy and Last-Mile Access

Timestamps: 14:14–17:04

• Approach:

  • Distributed renewable energy (DRE) seen as crucial for universal access where grid extension is impractical.
  • Africa50 supports World Bank and AfDB’s “Mission 300” (connecting 300 million Africans to electricity by 2030).
  • Africa50 to manage a $200m fund from the International Solar Alliance for DRE, with partnerships across Africa.

• Notable Partnerships:

  • Emerging collaborations with Sustainable Energy for All and the Nigerian Sovereign Investment Authority.

• Quote:

  “When you electrify a village, when you electrify a remote area, really the life of people change.”
  – Alain Ebobissé [16:14]

7. Clean Cooking as a Development Priority

Timestamps: 17:04–19:18

• Importance:

  • Hundreds of thousands, mostly women and children, die annually from indoor pollution due to dirty cooking methods.
  • Africa50 aims to support infrastructure for importing or producing LPG, ethanol, and other clean cooking fuels.

• Global Momentum:

  • Recent IEA-driven global conference elevated the clean cooking agenda, with Africa50 pledging overdue involvement.

• Quote:

  “Let's make sure that less people or nobody, actually nobody, will die because they're trying to cook a meal for their family.”
  – Alain Ebobissé [18:56]

8. Advocacy at the World Bank/IMF Meetings and COP29 Outlook

Timestamps: 19:18–23:14

• Calls to Action:

  • Urges sense of urgency: act on “good enough” projects instead of waiting for perfection.
  • Opportunity cost of delays is huge—both in lost development and increased emissions.

• Development and Climate:

  • Urges international community to accept dual objectives: development and climate, mobilizing blended finance and recognizing gas as a transition solution.

• Scaling Success:

  • Africa50 as a model for homegrown, scalable African solutions if given more capital.

• Quotes:

  “At Africa50, our mantra... is: If it's good enough, do it. And you can correct things along the way. You have to do things.”
  – Alain Ebobissé [20:12]

  “We are, again, the continent, the most affected [by climate change]. But we also understand that we have huge development needs.”
  – Alain Ebobissé [21:34]

9. Memorable Moments and Takeaways

Timestamps: 23:14–24:08

• Key Reflection:

  • Most exciting outcome of the week: conversations with investors about scaling up activities.

• Quote:

  “I enjoy policy discussions. I prefer action.”
  – Alain Ebobissé [23:54]

• Host’s Closing Note:

  “The perfection is the enemy of progress comes to mind.”
  – Kate Warren [24:03]
  “I agree with that.”
  – Alain Ebobissé [24:07]

Notable Quotes (with Speaker and Timestamps)

• “Our goal is really to have a lot more pipeline of bankable infrastructure project in Africa and in so doing attract more private investment to try to bridge the infrastructure gap.”
  – Alain Ebobissé [01:37]

• “We wanted to demonstrate, and we believe we are demonstrating, that we can do things faster without necessarily compromising quality…”
  – Alain Ebobissé [03:19]

• “There's a lot of money in Africa managed by African investors that we have to figure out a way to mobilize to channel those funds into African infrastructure.”
  – Alain Ebobissé [07:29]

• “In the energy space, that means we have a strong focus on developing renewable projects… but we are also doing gas as a transition fuel.”
  – Alain Ebobissé [12:07]

• “When you electrify a village, when you electrify a remote area, really the life of people change.”
  – Alain Ebobissé [16:14]

• “I enjoy policy discussions. I prefer action.”
  – Alain Ebobissé [23:54]

Tone and Takeaways

The conversation is direct, pragmatic, and energetic, emphasizing the need for speed, innovation, and local ownership in tackling Africa’s infrastructure deficit. Alain Ebobissé champions action over endless debate, balancing ambition for green transformation with the immediate needs for development and job creation. Africa50 emerges as a dynamic institution—rooted in Africa but collaborating globally—that is redefining how critical investments get delivered on the continent.