African Development Bank Announces $40 Million Investment in Green Infrastructure Projects in Africa
The African Development Bank (AfDB) has announced an initial investment of $40 million in mixed capital in the Alliance for Green Infrastructure in Africa (AGIA) project development fund, bringing the fund's total endowment to $118 million. This innovative initiative brings together development financial institutions, public entities, and private investors such as the German Development Bank (KfW), the West African Development Bank (BOAD), the UK's Foreign, Commonwealth and Development Office (FCDO), and the Soros Economic Development Fund.
The AfDB's investment is divided into $20 million in grants, $10 million in commercial capital, and $10 million in subordinated capital, financed through the Sustainable Energy Fund for Africa (SEFA).
Solomon Adegbie-Quaynor, Vice President of the AfDB's Private Sector, Infrastructure, and Industrialization Group, emphasized that this contribution goes beyond mere financial support: "This commitment is a bold statement by the AfDB, willing to share initial risks with its partners, paving the way for significant African potential in green infrastructure."
The AGIA initiative aims to raise $500 million to unlock $10 billion in investments in strategic sectors such as energy, sustainable transportation, and information and communication technologies (ICT), promoting a more sustainable, resilient, and prosperous development of the African continent.
