Angola’s sovereign wealth fund, FSDEA and London-based asset manager Gemcorp Capital announced the creation of a US$500 million Pan African Infrastructure Fund, aimed at bridging Africa’s infrastructure gaps by channelling private sector capital into energy transition, water, food security, and critical minerals.
This development underscores a broader shift in how infrastructure is financed on the continent, from reliance on state budgets and multilateral development agencies to a diversified pool combining sovereign wealth, private capital, institutional investors from around the world, and increasingly, interest from Gulf region financiers.
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Under the new structure, FSDEA will begin with an initial US$50 million equity commitment, with the potential to scale up to US$200 million depending on ensuing capital mobilisation. Gemcorp will contribute up to US$50 million.
The remainder of the fund, representing the bulk of the US$500 million target is expected to come from global investors seeking diversification beyond the “crowded” U.S. and European markets. According to Gemcorp’s senior executive, interest spans Gulf region sovereign wealth funds, European pension schemes, international institutional capital, and family offices.
The fund will be domiciled in Abu Dhabi, leveraging the financial infrastructure of the Abu Dhabi Global Market (ADGM). For Gemcorp, this is part of a broader strategy: the firm only secured its ADGM licence in 2024 and formalised its commitment to sustainable finance via the Abu Dhabi Sustainable Finance Declaration in October 2025.
This choice of domicile reflects a broader trend of Gulf capital acting as a catalyst for African development, a phenomenon that’s likely to grow as global investors look to emerging markets for higher returns and diversification.
Why Now
Africa’s infrastructure needs remain vast and urgent. According to the latest data compiled by Africa Finance Corporation (AFC), the continent already controls over US$1.1 trillion in domestic capital, including sovereign wealth funds, pension funds, public development banks and insurance pools.
Yet traditional funding mechanisms, government budgets, bilateral aid, and conventional development finance have proven inadequate to meet the scale of demand. The gap is especially acute in sectors such as energy, transport and logistics, water and sanitation, and industrial capacity. In 2024 alone, Africa added about 6.5 GW of utility-scale power generation capacity; while notable, this is modest compared with emerging economies like India or developed markets such as the United States, which added much larger capacity in the same period.
The Pan African Infrastructure Fund thus arrives at a critical moment. Its focus on energy transition, water, food security, critical minerals and other foundational infrastructure reflects Africa’s dual mandate: to support immediate development needs (clean water, sanitation, power, food) and to accelerate long-term structural transformation (industrialisation, resource value-addition, green energy, logistics).
Previous models, such as the Africa50 platform, demonstrate both the possibilities and challenges of continent-wide infrastructure financing. Founded in 2014 by the African Development Bank (AfDB) alongside African states, Africa50 has focused on energy, transport, water and digital infrastructure projects across Africa.
One of its vehicles, the Africa50 Infrastructure Acceleration Fund, mobilised US$275 million from African institutional investors in its latest close, illustrating growing confidence among local investors to back their continent’s development.
These results suggest that local institutional capital, if effectively mobilised, can complement global investors to deliver infrastructure at scale. The Pan African Infrastructure Fund combines this lesson with the growing appetite among non-African investors for diversified, impact-focused investments.
What It Means for Africa
The Pan African Infrastructure Fund could usher in a new era in which private capital underwrites critical projects across sectors and geographies. By channelling resources into energy transition, water and sanitation, critical minerals, and food security, the fund could contribute materially to Africa’s ambition for industrial transformation, economic diversification, and enhanced resilience. For countries like Angola, whose sovereign wealth fund is an anchor investor, the move signals a shift from resource-driven rent to strategic investment targeting long-term growth.
More broadly, this could help narrow the long-standing infrastructure financing gap. According to the latest AFC analysis, unlocking domestic pools of sovereign wealth funds, pension funds, and insurance capital remains a critical but underused lever.
The presence of Gulf-based investors and global institutional capital may also bring enhanced governance, project development support, and global best practices. Gemcorp’s commitment to sustainable finance, signalled through its ADGM-based operations and formal endorsement of the Abu Dhabi Sustainable Finance Declaration, could help align investments with environmental, social and governance standards.
Ultimately, the Fund exemplifies a growing recognition that Africa’s future lies not just in exporting raw resources, but in building infrastructure, industrial capacity, and the economic foundations for sustained development.
Challenges Ahead and What It Will Take to Succeed
While the promise is significant, the road ahead is not without obstacles. Mobilising the remaining capital beyond seed investments will require sustained confidence from global investors, confidence not just in returns, but in political stability, regulatory clarity and transparent governance across host countries. For a fund based in Abu Dhabi, the challenge will be to demonstrate that investment across Africa can yield competitive, risk-adjusted returns despite heterogeneous political and economic environments.
Moreover, translating financial commitments into tangible infrastructure will depend on project selection, local partnerships, and execution capabilities. Success will likely require close collaboration with governments, multilateral institutions, and local stakeholders to ensure projects meet local needs and deliver socio-economic impact, not simply financial returns.
Finally, maintaining high environmental and social standards will be essential, especially given the fund’s stated focus on water, energy transition, and critical minerals. Integrating sustainability from the outset will be key to ensuring that infrastructure development in Africa is both inclusive and resilient.
What This Could Mean for Africa’s Future
The launch of the Pan African Infrastructure Fund by FSDEA and Gemcorp represents more than a financing vehicle; it marks a statement of intent. It reflects a growing maturity in how Africa is financed, where sovereign wealth, private capital, local institutions and global investors converge around shared goals of development, transformation and long-term value creation.
If successful, the Fund could provide a template for future initiatives: leveraging African capital and assets to unlock global investment, while directing funds toward infrastructure that underpins industrialisation, energy security, water access, food stability, and economic growth.
At a time when global capital markets face uncertainty and emerging markets compete for attention, Africa may emerge as a compelling destination: not just for raw resource exploitation, but for building the backbone of a 21st-century, integrated, resilient and self-reliant continent.
