The African Development Bank Group (AfDB) has recently approved a $30 million equity investment in Africa Finance Corporation (AFC) to support the rollout of innovative “green shares” that aim to mobilize resources for climate action projects across Africa. This strategic investment is set to unlock funding for impactful projects such as wind and solar power plants in Djibouti and Egypt, as well as energy storage systems in Cabo Verde. By leveraging green equity and mobilizing debt funding from capital markets, AFC will be able to fund sub-projects that contribute to Africa’s sustainable development goals.
Africa, despite contributing less than 3% of global carbon emissions, faces severe climate impacts and an annual infrastructure financing gap of $170 billion. The investment from the African Development Bank in AFC’s green shares program is a significant step towards establishing an ecosystem of sustainable financing that will bridge these gaps and create economic opportunities while enhancing Africa’s climate resilience.
Solomon Quaynor, Vice President for Private Sector, Infrastructure, and Industrialization at the African Development Bank, emphasized the transformative power of strategic partnerships in driving sustainable development. The collaboration between the Bank and AFC is expected to attract other investors and signal Africa’s readiness to lead in green growth initiatives.
Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, expressed gratitude for the African Development Bank’s commitment to the Green Shares program, highlighting the critical role of sustainable financing in addressing Africa’s climate and infrastructure challenges. The partnership between the two entities aims to drive transformative change across the continent and support the transition to a prosperous and sustainable Africa.
The investment is projected to create over 1,600 full-time equivalent jobs by 2031, promote regional integration, and provide clean, reliable energy to millions of African households. It will also contribute to inclusive growth and expand economic opportunities for marginalized populations, including women and rural communities.
Ahmed Attout, Director for Financial Sector Development at the African Development Bank, emphasized that the partnership with AFC marks a significant milestone in channeling capital into projects that promote climate resilience and sustainable growth. The collaboration between the two institutions is expected to have a far-reaching impact on Africa’s development trajectory.
For media inquiries, please contact Yewande Thorpe at AFC and Olufemi Terry at the African Development Bank. AFC, established in 2007, focuses on pragmatic infrastructure and industrial investments across Africa, while the African Development Bank Group remains Africa’s premier development finance institution, contributing to the economic and social progress of its 54 regional member states.
The African Development Bank’s investment in AFC’s green shares program underscores its commitment to promoting sustainable development and addressing climate challenges in Africa. This strategic partnership is set to drive transformative change and pave the way for a prosperous and sustainable future for the continent.
