The African Development Bank Group has recently approved a $10 million concessional equity investment in the ARM-Harith Successor Infrastructure Equity Fund. This initiative is aimed at expanding access to reliable electricity, modern transportation infrastructure, and energy-efficient technologies in Nigeria and the broader West Africa region.
Wale Shonibare, the Director for Energy Financial Solutions at the African Development Bank, highlighted the significance of this investment, stating that it represents a crucial step forward in the collective effort to build sustainable infrastructure across Africa. The partnership with ARM-Harith, along with the catalytic role of the Sustainable Energy Fund for Africa (SEFA), demonstrates the power of collaboration in mobilizing private sector investment, including local currency, to achieve lasting positive impact for communities across the continent.
The investment from SEFA is expected to leverage additional funding from both local and international investors. ARM-Harith aims to raise a total capital of $200 million to support sustainable infrastructure and energy transition projects across West Africa, with a specific focus on Nigeria.
The Sustainable Energy Fund for Africa (SEFA) is a multi-donor Special Fund designed to provide catalytic financing that stimulates private sector investment in renewable energy and energy efficiency projects. The ARM-Harith Successor Infrastructure Equity Fund, managed by ARM-Harith Infrastructure Investments (ARMHII), is a groundbreaking initiative addressing the critical shortage of equity financing in the region’s infrastructure sector.
The fund’s innovative structure allows for capital raising in both US dollars and Nigerian Naira, attracting a diverse range of investors, including local pension funds, to maximize its impact. Building upon the success of ARMHII’s inaugural fund, which received support from the Bank in 2015, the ARM-Harith Successor Infrastructure Equity Fund focuses on sustainable infrastructure and energy transition projects with expected outcomes such as the addition of 200 MW of renewable energy capacity, reduction of 800,000 tons of CO2 emissions, creation of 10,000 jobs, and improved energy access for 100,000 households.
Rachel Moré-Oshodi, Managing Director and CEO of ARM-Harith, expressed gratitude for the partnership with the African Development Bank, emphasizing the strategic nature of the initiative. This collaboration sets a new standard for impactful investing, aligning with the vision of fostering a thriving and self-sufficient continent by mobilizing domestic capital for infrastructure development.
The Bank’s investment in ARM-Harith aligns with its High Five priorities and key objectives under the New Deal on Energy for Africa and the Climate Change and Green Growth Action Plan 2021-2025. It also contributes to the M300 initiative, aiming to deliver electricity to 300 million Africans by 2030. The Fund’s emphasis on private investment aligns with the Bank’s Ten-Year Strategy 2024-2033 and SEFA’s mission to drive private sector investment in emerging renewable energy markets.
This investment in the ARM-Harith Successor Infrastructure Equity Fund signifies a significant step towards sustainable development in Africa, with a focus on enhancing infrastructure, promoting renewable energy, and driving economic growth in the region.
