Categories: News

AfDB invests $40m in Africa’s green infrastructure fund  

The African Development Bank (AfDB) has pledged $40 million to the Alliance for Green Infrastructure in Africa Project Development Fund (AGIA-PD), anchoring the Fund’s first close of $118 million.

AfDB Vice President for Private Sector, Infrastructure and Industrialisation, Solomon Quaynor, announced the commitment in a statement on Saturday, describing it as a major step towards mobilising blended finance for bankable green infrastructure projects across the continent.

The package includes $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from the Sustainable Energy Fund for Africa, administered by AfDB. Quaynor said the support would help de-risk early-stage projects and attract private sector capital to accelerate Africa’s transition to a low-carbon, climate-resilient economy.

“Through this investment, the Bank is sharing early-stage risks with partners while unlocking billions in private-sector financing,” he said.

Launched at COP27, AGIA aims to raise $500 million to unlock a $10 billion pipeline of projects across renewable energy, transport, water, and ICT.

Africa50 CEO Alain Ebobissé said the first close signaled a shift from ambition to execution, while UK Minister of State for Development Jenny Chapman noted that Britain’s support would enable climate-resilient projects like solar farms and water treatment plants in vulnerable communities.

Germany, through its development bank KfW, contributed €26 million, while the West African Development Bank (BOAD) reaffirmed its commitment to bridging regional infrastructure gaps through its participation.

Other supporters, including the Soros Economic Development Fund and the Three Cairns Group, described AGIA as a vital Africa-led initiative addressing the lack of bankable projects for clean energy and climate resilience.

Jointly led by AfDB, the African Union Commission, and Africa50, AGIA is designed to catalyse transformative, sustainable infrastructure that creates jobs and strengthens Africa’s economic future.

LUKMAN ABDULMALIK

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