The African Development Bank (AfDB) has announced a significant $30 million equity investment in the Africa Finance Corporation (AFC) aimed at financing climate action projects throughout Africa.
This investment will support the development of solar power plants and energy storage systems, as outlined in a recent statement from the parties involved.
The funding is part of AFC’s innovative 'green shares' program, designed to attract substantial investments for impactful projects, including renewable energy initiatives in Djibouti and Egypt, as well as energy storage solutions in Cabo Verde.
AFC plans to utilize this green equity to mobilize additional debt funding from capital markets for sub-projects.
This initiative is expected to create over 1,600 full-time equivalent jobs by 2031 while promoting regional integration and providing clean energy to millions of households across the continent.
Furthermore, it aims to drive inclusive growth and expand economic opportunities for marginalized groups, particularly women and rural communities.
Despite contributing less than three percent of global carbon emissions, Africa faces severe climate challenges and an annual infrastructure financing gap of $170 billion.
The AfDB’s investment positions AFC to play a crucial role in fostering sustainable financing ecosystems that address these gaps and enhance Africa's climate resilience.
Solomon Quaynor, AfDB's Vice President for Private Sector, Infrastructure, and Industrialization, emphasized that this collaboration exemplifies the transformative potential of strategic partnerships.
He noted that AfDB's pioneering investment in AFC’s green shares is expected to attract further regional and global investors, signaling Africa's readiness to lead in green growth.
AFC’s Executive Board Member Banji Fehintola expressed gratitude for AfDB's commitment, highlighting the importance of sustainable financing in addressing Africa's climate and infrastructure challenges.
He stated that this partnership would advance effective solutions supporting the continent's green transition and long-term development.
