The African Development Bank (AfDB) has made a significant commitment to Africa’s green infrastructure development by investing $40 million in blended capital for the Alliance for Green Infrastructure in Africa (AGIA) – Project Development Fund.
The bank announced this in a statement on Wednesday.
The statement noted that the investment has anchored the fund’s first close of $118 million, marking a new era in mobilizing blended capital for project development across the continent.
It added that the initiative, led by the AfDB, the African Union (AU) Commission and Africa50, aimed to unlock a pipeline of investment-ready green infrastructure projects across the continent.
“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 statement said.
The AGIA-PD brought together a coalition of development finance institutions, public agencies, philanthropic organisations and private investors. Key partners include KfW, the West African Development Bank (BOAD), the UK’s Foreign, Commonwealth & Development Office (FCDO), and the Soros Economic Development Fund.
The AfDB’s $40 million commitment comprised $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from the Sustainable Energy Fund for Africa, which the Bank administers.
According to the bank, this underscores its leadership in de-risking early-stage projects and catalysing private investment into infrastructure.
Solomon Quaynor, AfDB vice-president for private sector, infrastructure and industrialisation, said that the investment would pioneer a comprehensive approach to unlock Africa’s green infrastructure potential.
“This investment represents more than capital. It is a bold declaration that the Bank stands ready to share early-stage risk alongside our partner.
“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 mobilise billions in private-sector investment for Africa’s low-carbon and climate-resilient infrastructure, ” said.
On his part, Alain Ebobissé, Africa50 chief executive officer (CEO), described the first close of the project development fund as proof of progress since the initiative was unveiled at COP27.
“We are deeply grateful to our founding partners and investors for their trust and commitment.
“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,” he said.
He added that Africa50 is proud to serve as fund manager and drive the initiative forward.
