The African Development Bank (AfDB) has committed $40 million in blended capital to the Alliance for Green Infrastructure in Africa Project Development Fund (AGIA-PD), securing the fund’s initial close at $118 million.
Solomon Quanor, AfDB Vice President for Private Sector, Infrastructure and Industrialization, announced this development in a statement, stating that this is a major step in mobilizing finance for investment-ready green projects across Africa.
Quaynor explained that the commitment includes $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from the Sustainable Energy Fund for Africa, which AfDB administers.
He further explained that this structure de-risks early-stage initiatives to draw private capital.
“Through the $40 million package spanning grants, junior equity, and commercial equity, the AfDB is pioneering a comprehensive approach to unlock Africa’s vast green infrastructure potential,” said Quaynor.
He added that this investment signals AfDB’s readiness to share early risks with partners, aiming to mobilize billions in private-sector funds.
Partner endorsements
On his part, Alain Ebobissé, CEO of Africa50, noted that the first close transitions AGIA from ambition to action since its COP27 launch.
“Since the unveiling of the initiative at COP27, the Alliance for Green Infrastructure in Africa has moved from ambition to execution, and this first close of the AGIA Project Development Fund is a powerful testament to that progress”.
“By unlocking early-stage capital, AGIA will accelerate the development of bankable projects, strengthen local capacity, and pave the way for a more sustainable and prosperous Africa.”
“Africa50 is proud to serve as fund manager and drive this vital initiative forward,” said Ebobissé.
UK Minister of State for Development Jenny Chapman affirmed Britain’s support for African-led solutions in vulnerable areas.
“We are partnering with countries to unlock private investment in the places hardest hit by climate change”.
“This will support solar farms, water treatment plants, and other projects that help build stronger, climate-resilient economies,” Chapman added.
On her part, Christine de Barros, Head of Cooperation at the German Embassy in Maputo, detailed Germany’s €26 million contribution via the KfW development bank.
“AGIA identifies and develops projects until they reach creditworthiness, then sells them to investors.
“This generates vital investments in renewable energy, transport, water, and digitalization, sectors Africa urgently needs to foster growth and create jobs,” she explained.
His comment on the first close, President of the West African Development Bank (BOAD), Serge Ekue, reaffirmed BOAD’s dedication.
“BOAD’s commitment to supporting Africa50 in implementing AGIA underscores our dedication to closing Africa’s infrastructure gap and fostering private sector investment in innovative projects,” said Ekue.
Mark Gallogly, Co-founder of the Three Cairns Group, identified the core challenge:
“The lack of bankable projects remains a persistent barrier to scaling clean energy and climate-resilient infrastructure. AGIA’s first close marks a significant milestone in tackling the challenge,” said Gallogly.
In addition, Georgia Keohane, CEO of the Soros Economic Development Fund, praised AGIA as an essential partnership.
“The Soros Economic Development Fund is proud to support AGIA, a critically important partnership catalysing transformative projects that enhance climate resilience and drive inclusive, sustainable development,” Keohane said.
AfDB, others target $500 million fund
Jointly led by AfDB, the African Union Commission, and Africa50, during the COP27, AGIA intends to target $500 million in total to develop a $10 billion pipeline of green infrastructure projects across strategic areas, including energy, sustainable transport, and ICT.
This analytical approach addresses Africa’s infrastructure deficit through technical assistance and risk mitigation, ensuring scalable investments that promote economic growth.
