Investment is needed for climate intervention; Photo illustration from Pexel
African Development Bank’s investment anchors first close of $118 million for Africa’s leading green infrastructure initiative
The African Development Bank Group has announced $40 million in blended capital to the Alliance for Green Infrastructure in Africa – Project Development Fund, anchoring the Fund’s first close of $118 million.
“Through this $40 million spanning grants, junior equity, and commercial equity, the African Development Bank is pioneering a comprehensive approach that will unlock Africa’s vast green infrastructure potential,” said Solomon Quaynor, the Bank’s Vice President for Private Sector, Infrastructure and Industrialization.
“The resources will be deployed for co-development with both emerging and established developers, ensuring a diverse and scalable pipeline. Our blended-finance model is designed to mobilize billions in private-sector investment for Africa’s low-carbon and climate-resilient infrastructure.”
This milestone marks a new era towards mobilizing blended capital in project development, to unlock a robust pipeline of investment-ready green infrastructure projects across the continent.
The AGIA-PD has a strong alliance of development finance institutions, public agencies, philanthropic organizations, and private investors.
They include KfW (the German development bank), the West African Development Bank (BOAD), the UK’s Foreign, Commonwealth & Development Office (FCDO), and the Soros Economic Development Fund.
The African Development Bank’s strategic investment in the Fund comprises $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from the Sustainable Energy Fund for Africa.
“Since the unveiling of the initiative at COP27, the Alliance for Green Infrastructure in Africa has moved from ambition to execution, and this first close of the AGIA Project Development Fund is a powerful testament to that progress”, Africa50, Alain Ebobissé, CEO.
He added. “ By unlocking early-stage capital, AGIA will help accelerate the development of bankable green infrastructure projects, strengthen local capacity, and pave the way for a more sustainable, resilient, and prosperous Africa. Africa50 is proud to serve as fund manager and drive this vital initiative forward.”
The Alliance for Green Infrastructure in Africa – Project Development Fund is part of the AGIA initiative, led by the African Development Bank, the African Union Commission, and Africa50.
The initiative aims to raise $500 million, with $100 million in grants for project preparation overseen by the Bank and $400 million for project development through the Fund, to unlock a $10 billion investment pipeline in strategic areas, including energy, sustainable transport, and ICT.
“We are partnering with countries to unlock private investment in the places hardest hit by climate change. This is good news for local communities, helping create growth, and for the UK. Today’s UK investment will support African-led projects like solar farms and water treatment plants, helping build stronger economies which can better deal with the effects of climate change.”Minister of State for Development of the United Kingdom, Jenny Chapman, commented.
The Three Cairns Group also supports AGIA-PD through its partner, the African Climate Foundation.
“The lack of bankable projects remains a persistent barrier to scaling clean energy and climate-resilient infrastructure across Africa,” said Mark Gallogly, co-founder of Three Cairns Group.
“AGIA’s first close marks a significant milestone in tackling this challenge. We are proud to support this effort and to see catalytic capital flow into early-stage project development, a critical enabler for unlocking economic vitality on the continent,” he added.
