The African Development Bank Group (AfDB) has announced $40m in blended capital to the Alliance for Green Infrastructure in Africa – Project Development Fund, anchoring the Fund’s first close of $118m.
This milestone marks a new era towards mobilising blended capital in project development, to unlock a robust pipeline of investment-ready green infrastructure projects across the continent.
According to the bank, 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), the Three Cairns Group, and the Soros Economic Development Fund.
The bank’s strategic investment in the Fund — comprising $20m in grants, $10m in commercial equity, and $10m 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 catalysing private investment into infrastructure.
“Through this $40m 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.
“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 the Bank’s Vice President for Private Sector, Infrastructure and Industrialisation, Solomon Quaynor.
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 $100m in grants for project preparation overseen by the Bank and $400m for project development through the Fund, to unlock a $10bn investment pipeline in strategic areas, including energy, sustainable transport, and ICT.
“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.
“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.
“Africa50 is proud to serve as fund manager and drive this vital initiative forward”, said Africa50 CEO, Alain Ebobissé, CEO.
Minister of State for Development of the United Kingdom, Jenny Chapman, said, “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.”
