The facility intends to address the financing gap in the region by providing customized and cost-effective solutions, particularly in a market where smaller project sizes and perceived risks have previously deterred investors, despite the urgent need for clean energy.

The ASF is expected to significantly contribute to expanding energy access, accelerating solar energy deployment, and promoting sustainable development across Africa, the statement further noted.

This decision followed ISA's public expression of interest (EOI) process, which sought to identify capable entities to serve as the ASF's investment manager. The announcement was made during the inaugural International Solar Festival 2024, organized by ISA, which is an intergovernmental body dedicated to promoting solar energy as a key solution for combating climate change and achieving a carbon-neutral future.

ISA Director General Ajay Mathur stated that ISA is collaborating with Africa50 to implement the first regional fund in Africa under the Global Solar Facility, ISA?s flagship private sector program. He expressed confidence that Africa50 would be a suitable partner for the Africa Solar Facility, highlighting that the organization combines the public sector?s reach and resources with the private sector?s agility and investment capacity. Mathur also expressed hopes that the collaboration with Africa50 would help deliver clean electricity to 600 million people across Africa.

Africa50, which is supported by 32 African countries, the African Development Bank, and two African central banks, is a prominent pan-African infrastructure investor and asset manager. With a portfolio exceeding $8 billion, it has mobilised over $4 billion in external funding for infrastructure projects across the continent.