Africa Capital Hub
What is the Africa Capital Hub?
the Africa Capital Hub (ACH), a transaction-support Hub designed to accelerate transactions and mobilize $1 billion of private, public, and philanthropic capital by 2030 for environmental, green and social projects. The Hub will be rolled out in several pilot African countries towards the end of this year and subsequently expanded across the continent. In addition to capital mobilization, the ACH will provide projects with comprehensive finance-related technical assistance, financial structuring, and investor outreach support.
Key sectors focus: energy, agriculture, infrastructure, health, and education (maybe also to connect with related SDGs)
Country focus: create a space for this but leave it for the moment as this is still under conversation with CIFF. We have for sure Kenya and Tanzania so maybe for the moment add these two countries but we are currently in conversation to add 2/3 more countries (potentially Malawi, Rwanda, and Nigeria/Ethiopia).
How Does the Africa Capital Hub Work?
The operational flow integrates four uniquely curated, transaction focused attributes (The Neutral Capital Centre, The Africa Finance Framework, The Africa Finance Specialists, Technical Assistance & Project Pipeline Development) to promote bankability and enhance the efficiency of capital mobilization into SDG-linked investments, as follows:
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Origination and alignment with country investment plans and national strategies: Embedded within Ministries of Finance (MoF), the Africa Finance Specialists identify and prioritise projects in collaboration with the Government. They align government financial and social priorities with investor interests, ensuring swift project initiation and development as well as facilitating the aggregation of a robust and impactful project pipeline.
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Project preparation and bankability enhancement: The Africa Finance Framework, utilising data analytics, identifies clear opportunities to enhance the bankability of projects. Technical Assistance & Project Pipeline Development involves provision of tailored financial and technical support to ensure projects meet investor criteria and deliver measurable impact. This leads to lower costs, reduced transaction frictions, improved capital efficiency, faster access to funding, and development of high-quality projects.
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Structuring and capital mobilization: As a non-competitive channel, the Neutral Capital Centre facilitates investor engagement and aligns and blends different forms of capital - philanthropic, public, and private – developing customized blended finance structures that optimize project return profiles whilst maximizing societal impact. This approach enhances capital efficiency and ensures that investments are attractive and viable for a diverse range of investors.
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Execution, results, and capacity building: The ACH team and the critical role of the Africa Finance Specialists not only assist the finalisation of the transactions by supporting complex negotiations and closing processes, but also focuses on building long-term government capacity to identify and address political, financial and impact risks objectives
The Team
the Secretariat
The Investment Bank for Earth - Bankers without Boundaries (BwB), will lead the mobilization of the ACH. BwB will act as the Secretariat and host the ACH. This approach will ensure flexibility in operations, allowing for the demonstration and refinement of ACH capabilities while maintaining suitable governance processes with the Strategic Advisory Board and the Secretariat.
BwB is a not-for-profit global financing innovator, investment banking and advisory firm, powered by over seventy former investment bankers and finance professionals with expertise in public and private transactions in Africa, Asia, and Europe, delivering maximum social investment impact. Founded in 2013, the BwB senior management present decades of collective experience in delivering transactions with governments and institutional clients across 15+ African countries and more than 45 countries globally.
The Advisory Board
The ACH will also tap into the experMse and strategic direcMon of a Strategic Advisory Board composed of African global leaders with significant experMse in public and private markets, and representaMve of the ACH ecosystem. The Board will play a key role in the development of the ACH, assessing its performance as well as advising on its short- and long-term objecMves.
Questions about the Capital Hub and its objectives can be directed to: africacapitalhub@ACH.earth
