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Home » General » African Development Bank to make $30 million equity investment
in Africa Finance Corporation to catalyse climate action
AFRICAN DEVELOPMENT BANK TO MAKE $30 MILLION EQUITY INVESTMENT IN AFRICA FINANCE
CORPORATION TO CATALYSE CLIMATE ACTION
Posted By: December 13, 2024
Download logo
The African Development Bank’s (www.AfDB.org) Board of Directors has approved a
$30 million equity investment in Africa Finance Corporation (AFC) for the
rollout of innovative "green shares” aimed at mobilising resources for climate
action projects across Africa.
The innovative financial instruments are expected to unlock significant funding
for high-impact projects, including wind and solar power plants in Djibouti and
Egypt and energy storage systems in Cabo Verde. AFC will leverage the green
equity and mobilise debt funding from capital markets for on-lending to
sub-projects. The board approval took place on 11 December 2024.
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 positions AFC to play a key
role in establishing an ecosystem of sustainable financing that will bridge
these gaps to create economic opportunities and enhance Africa’s climate
resilience.
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Solomon Quaynor, African Development Bank Vice President for Private Sector,
Infrastructure and Industrialisation said, “the collaboration between the
African Development Bank and Africa Finance Corporation exemplifies the
transformative power of strategic partnerships. The Bank Group’s first-mover
investment in AFC’s green shares is expected to attract other regional and
global investors, amplifying the impact of this initiative, and sending a strong
signal to global investors that Africa is ready to lead the way in green
growth.”
"We are honoured to welcome the African Development Bank, Africa’s largest
development finance institution, as the first investor in our Green Shares
program,” said Banji Fehintola, Executive Board Member and Head of Financial
Services at AFC. “Their $30 million commitment highlights the critical role of
sustainable financing in tackling Africa’s climate and infrastructure
challenges, while strengthening our shared mission to drive transformative
change across the continent. By working with a like-minded partner who shares
our vision for a prosperous and sustainable Africa, we are advancing impactful
solutions that support the continent’s green transition and long-term
development," he added.
Ahmed Attout, the Bank’s Director for Financial Sector Development, stressed
that, “This partnership with AFC is a major milestone in our efforts to channel
domestic, regional, and global capital into projects that build climate
resilience and foster sustainable growth.”
The investment is projected to contribute to the creation of over 1,600
full-time equivalent jobs by 2031, while also fostering regional integration,
and generating clean, reliable energy to power millions of African households.
It is also expected to drive inclusive growth and expand economic opportunities
for marginalised populations, including women and rural communities.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Media Contacts:
AFC
Yewande Thorpe
Mobile : +234 1 279 9654
Email : yewande.thorpe@africafc.org
African Development Bank
Olufemi Terry
Communication and External Relations Department
Email: media@afdb.org
About Africa Finance Corporation:
Africa Finance Corporation was established in 2007 to be the catalyst for
pragmatic infrastructure and industrial investments across Africa. AFC’s
approach combines specialist industry expertise with a focus on financial and
technical advisory, project structuring, project development, and risk capital
to address Africa’s infrastructure development needs and drive sustainable
economic growth.
Seventeen years on, AFC has developed a track record as the partner of choice in
Africa for investing and delivering on instrumental, high-quality infrastructure
assets that provide essential services in the core infrastructure sectors of
power, natural resources, heavy industry, transport, and telecommunications. AFC
has 43 member countries and has invested US$13 billion across Africa since
inception.
About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance
institution. It comprises three distinct entities: the African Development Bank
(AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On
the ground in 41 African countries with an external office in Japan, the Bank
contributes to the economic development and the social progress of its 54
regional member states. For more information: www.AfDB.org
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