AfDB pledges $40 million to support Africa’s push for green infrastructure
AfDB’s $40 million investment in green infrastructure serves as the foundation for the $118 million initial closure of the AGIA fund, which aims to unlock sustainable projects throughout Africa.
The Alliance for Green Infrastructure in Africa (AGIA) – Project Development Fund has had its first closing of $118 million, with the African Development Bank (AfDB) announcing a $40 million investment in blended capital.
The effort, which is spearheaded by Africa50, the African Union (AU) Commission, and the AfDB, intends to provide a pipeline of green infrastructure projects throughout the continent that are ready for investment.
In a statement released on Wednesday, the bank said, “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.”
A coalition of state authorities, private investors, charitable organizations, and development finance institutions is brought together by the AGIA-PD. KfW, the Soros Economic Development Fund, the UK’s Foreign, Commonwealth & Development Office (FCDO), and the West African Development Bank (BOAD) are important partners.
The $40 million commitment from the AfDB is made up of $10 million in commercial equity, $10 million in junior equity, and $20 million in grants from the Bank’s Sustainable Energy Fund for Africa. The bank claims that this further demonstrates its leadership in lowering the risk of early-stage projects and encouraging private investment in infrastructure.
The investment will lead a holistic strategy to unlock Africa’s potential for green infrastructure, according to Solomon Quaynor, AfDB vice-president for the private sector, infrastructure, and industrialization.
“This investment is more than just money. The Bank’s bold statement that it is prepared to share early-stage risk with our partner was made by Quaynor.
In order to provide a diversified and scalable pipeline, the resources will be made available for co-development with both seasoned and up-and-coming developers. The goal of our blended finance strategy is to raise billions of dollars in private sector funding for climate-resilient and low-carbon infrastructure throughout Africa.
The first closing of the project development fund, according to Africa50 CEO Alain Ebobissé, is evidence of progress since the program was introduced at COP27.
“We sincerely appreciate the trust and dedication of our investors and founding partners,” Ebobissé stated.
“AGIA will contribute to the acceleration of bankable green infrastructure projects, enhance local capacity, and clear the path for a more resilient, prosperous, and sustainable Africa by unlocking early-stage capital.”
He went on to say that Africa50 is honored to lead the effort and act as fund manager.
