The African Development Bank (AfDB) Group has announced a $40 million investment in blended capital for the Alliance for Green Infrastructure in Africa (AGIA) – Project Development Fund.
In a statement on Wednesday, the bank said the investment would anchor the fund’s first close of $118 million, as part of the AGIA initiative led by the AfDB, the African Union (AU) Commission and Africa50.
“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,” AfDB said.
“The AGIA-PD’s strong alliance of development finance institutions, public agencies, philanthropic organizations, and private investors includes 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.
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“The African Development Bank’s strategic investment in the Fund — comprising $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 — underscores the Bank’s leadership in de-risking early-stage projects and catalyzing private investment into infrastructure.”
Solomon Quaynor, the bank’s vice-president for private sector, infrastructure and industrialisation, said the $40 million investment will 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,” he said.
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“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.”
Alain Ebobissé, Africa50 chief executive officer (CEO), said after the unveiling of the initiative at COP27, the AGIA has moved from ambition to execution, and the first close of the project development fund is a powerful testament to that progress.
“We are deeply grateful to our founding partners and investors for their trust and commitment,” Ebobissé said.
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“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.”
The CEO added that Africa50 is proud to serve as fund manager and drive the initiative forward.
