The Board of Directors of the African Development Bank (AfDB) approved, on December 11, 2024 in Abidjan in Côte d’Ivoire, an investment of $30 million in Africa Finance Corporation (AFC) for the deployment of “actions “green” projects aimed at mobilizing resources for climate action projects across Africa.
These innovative financial instruments are expected to unlock significant financing for high-impact projects, including wind and solar power plants in Djibouti and Egypt and energy storage systems in Cabo Verde. The Africa Finance Corporation will leverage green equity and mobilize debt financing from capital markets for reallocation to sub-projects.
Despite contributing less than 3% of global carbon emissions, Africa faces severe climate impacts and an annual infrastructure financing gap of $170 billion. The African Development Bank’s investment allows the Africa Finance Corporation to play a key role in establishing a sustainable financing ecosystem that will fill these gaps to create economic opportunities and strengthen the resilience of the Africa facing climate change.
“The collaboration between the African Development Bank and Africa Finance Corporation illustrates the transformative power of strategic partnerships. The Bank Group’s investment in Arica Finance Corporation’s green stocks is expected to attract other regional and global investors, amplify the impact of this initiative and send a strong signal to global investors that Africa is ready to lead the way in green growth,” said Solomon Quaynor, African Development Bank Vice President, Private Sector, Infrastructure and Industrialization.
“We are honored to welcome the African Development Bank, Africa’s largest development finance institution, as the first investor in our green equity program,” said Banji Fehintola, Board Member and Head of Investments. financial services at Africa Finance Corporation. “Its $30 million commitment highlights the critical role of sustainable finance in addressing Africa’s climate and infrastructure challenges, while strengthening our shared mission to drive transformative change across the continent. Working with a like-minded partner who shares our vision of a prosperous and sustainable Africa, we are advancing high-impact solutions that support the continent’s green transition and long-term development,” he added.
For Ahmed Attout, Director of Financial Sector Development at the Bank, “this partnership with Africa Finance Corporation is a major step in our efforts to channel national, regional and global capital towards projects that strengthen climate resilience and promote sustainable growth . »
The investment is expected to help create more than 1,600 full-time jobs by 2031, while promoting regional integration and producing clean, reliable energy to power millions of African homes. It should also promote inclusive growth and expand economic opportunities for marginalized populations, including women and rural communities.
About Africa Finance Corporation
Africa Finance Corporation was established in 2007 to be the catalyst for pragmatic investments in infrastructure and industry across Africa. Its approach combines specialized sector expertise with a particular emphasis on financial and technical advice, project structuring and development and development capital to meet Africa’s infrastructure development needs and to stimulate a sustainable economic growth.
Seventeen years later, Africa Finance Corporation has established itself as the partner of choice in Africa for investment and delivery of high-quality key infrastructure that provides essential services in the energy, resources and natural resources, heavy industry, transport and telecommunications. Africa Finance Corporation has 43 member countries and has invested $13 billion across Africa since its inception.
