Africa50 – JABF
25 July 2017

0Infrastructure equity investment is one component of a broader
ecosystem that Africa50 is looking to engage and shape
PPA
negotiations

EPC
negotiations

Feasibility
studies

Regulatory& permitting

DFIs
Strategics

Africa50 structuring and fundraising strategy

Public-private
partnerships

Project
Development
Subsidies forcore infra.

Cost of financing
vs lifecycle
efficiency gains

SocialimpactPublic sector

2Regulators
Public vs private
provision ofinfrastructure

Strategics

Governments

Multilaterals

PublicSector& Users

Holdingperiod13Project
EquityFinancialinvestors
Returntargets
DFIs

Quality ofservice

Users ofinfrastructure

Politicalrisk

Infrastructure
needs

Tenor

Currencyrisk

4Local &regionalbanks

Project
Debt

Institutional
investors

DFIs

Demand risk

Counterpartyrisk

Benchmark tosovereign
Credit profile

21

Africa50 is an infrastructure investment platform that contributes tothe continent's growth

INVEST IN
INFRASTRUCTURE▪ Develops and invests in apipeline of bankable privateand PPP infrastructure
projects▪ Catalyzes public sector
capital and mobilizes
private sector funding (incl.
long term savings)
DEVELOP APIPELINE OF
BANKABLE
PRIVATE AND PPPPROJECTSCATALYZE
PUBLIC SECTOR
CAPITAL &MOBILIZEPRIVATE SECTORFUNDING▪ Provides differentiatedreturns and impact2Africa50 Project Development : Increase pipeline of bankable projects
Africa50 Project Finance : Take equity stakes in priority infrastructure
projects
Project lifecycle

Assessing
theenabling
environment1

Develop
proof ofconcept

ObtainFinalizeapprovals,
financDemons
Secureconduct
ing andtrate
revestakeholder
techni2
feasibilinues
engagecal
tymentdesignCommercial
close

ConsTesting
truction

Financialclose

Focus of Africa50 Project Development activities

Initialoperations

Steadystate

Focus of Africa50 Project
Finance activities▪ Contribute to growing a pipeline of private and PPP projects from deal sourcing
through financial close by being an active partner (e.g., driving the PPP agenda)▪ Sell to PF or externally at financial close▪ Generate self-sustaining returns (a model few Project developers have successfully
implemented to date)▪ Leverage AfDB’s Africa Investment Forum to syndicate projects
1 Specifically, market intelligence and relationship-building
2 Includes negotiation of commercial contracts
3Africa50 Project Development predominantly builds its
pipeline through partnerships with other developers whocomplement its core value proposition
Africa50 Project Development valueproposition

Africa50 Project Development ownershipmodel▪ Ability to engage stakeholders along▪ Africa50 would take an active role

the deal cycle (through relations with
African public sector, …)▪ Ability to identify and help resolve projectissues in select markets▪ Preferential access to deals via its
network and ability to identify projects
with strong political support▪ Ability to mitigate risks, support project
structuring and financial appraisal

alongside the main sponsor (except forsurrogate sponsor engagements) in codeveloping projects and selectively ininitiating projects, bringing its core value
proposition▪ Africa50 would operate throughpartnerships with other developers whocomplement its value proposition▪ Africa50 would typically take significant
minority stakes in the projects it develops4Africa50 Project Finance leverages its core value
proposition to bring in the best possible strategic partners
Africa50 brings a clear value proposition
to its investors and projects
 Access to pipeline of deals (throughAfrica50 Project Development and own
network of key public and privatestakeholders) Ability to engage stakeholders postfinancial close to mitigate risk in markets
perceived as high risk)
 Access to AfDB and DFI community for
preferential debt

Africa50 Project Finance ownership model▪ Africa50 will catalyze private investments ininfrastructure by taking minority stakes inprojects or platforms and “crowding in”
other investors, but can also act as amajority shareholder on a case by casebasis▪ Africa50 will primarily team up withstrong sponsors with strong operational
expertise, incl. regional and South-Southsponsors

 Preferential relations with potential
secondary buyers

5