African Development Bank to make $30 million equity investment in Africa Finance Corporation to catalyse climate action
African Development Bank (African Development Bank website) The board of directors has approved a $30 million equity investment in Africa Finance Corporation (AFC) to launch an innovative “green equity” aimed at mobilizing resources for climate action projects across Africa.
Innovative financial instruments are expected to unlock significant funding for high-impact projects, including wind and solar farms in Djibouti and Egypt and energy storage systems in Cape Verde. AFC will use green equity to raise debt funds from the capital market for on-lending to sub-projects. Approved by the Board of Directors on December 11, 2024.
Although Africa accounts for less than 3% of global carbon emissions, it faces severe climate impacts and a $170 billion annual infrastructure financing gap. The African Development Bank’s investment enables the African Finance Commission to play a key role in building a sustainable financing ecosystem that will bridge these gaps, create economic opportunities and strengthen Africa’s climate resilience.
Solomon Quina, African Development Bank Vice President for Private Sector, Infrastructure and Industrialization, said: “The collaboration between the African Development Bank and the African Finance Corporation exemplifies the transformative power of strategic partnerships. The Bank Group’s commitment to AFC Green The advance investment in the equity is expected to attract other regional and global investors, amplifying the impact of this initiative and sending a strong signal to global investors that Africa is ready to lead green growth.”
“We are honored to welcome the African Development Bank, Africa’s largest development finance institution, as the first investor in our Green Equity programme,” said Banji Fehintola, AFC Executive Board Member and Head of Financial Services. “Their $30 million commitment highlights the critical role of sustainable finance in addressing Africa’s climate and infrastructure challenges, while reinforcing our shared mission to drive change across the continent. By working with like-minded partners who share our vision Working together to achieve a prosperous and sustainable Africa, we are advancing impactful solutions that support the continent’s green transition and long-term development,” he added.
Ahmed Attout, Director of Financial Sector Development at the World Bank, emphasized: “Partnering with the AFC is an important part of our efforts to bring domestic, regional and global capital into projects that build climate resilience and promote sustainable growth. milestone.”
The investment is expected to help create more than 1,600 full-time equivalent jobs by 2031, while also promoting regional integration and generating clean, reliable energy to power millions of African homes. It is also expected to drive inclusive growth and expand economic opportunities for marginalized people, including women and rural communities.
Distributed by APO Group on behalf of the African Development Bank Group (AfDB).
Media Contact:
AFC
Yewande Thorpe
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e-mail: yewande.thorpe@africafc.org
African Development Bank
Breathe Terry
Department of Communications and External Relations
e-mail: media@afdb.org
about African Finance Corporation:
africa finance corp. Established in 2007, it aims to be a catalyst for pragmatic infrastructure and industrial investment in Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and venture capital to meet Africa’s infrastructure development needs and drive sustainable economic growth.
For seventeen years, AFC has been Africa’s partner of choice, with a proven track record of investing in and delivering useful, high-quality infrastructure assets that serve core infrastructure sectors such as power, natural resources, heavy industry, and transport. Basic services. telecommunications. The AFC has 43 member countries and has invested US$13 billion across Africa since its inception.
About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It consists of three different entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). The bank operates in 41 African countries and has an external office in Japan, contributing to the economic development and social progress of its 54 regional member countries. For more information: African Development Bank website
