The African Development Bank Group Board of Directors has committed a $10 million concessional equity investment in the ARM-Harith Successor Infrastructure Equity Fund. These funds will support transportation infrastructure and energy-efficient technology in Nigeria and other locations in West Africa.
The investment will be funded through the Sustainable Energy Fund for Africa (SEFA). It will serve as a catalyst to attract additional capital from both local and international investors. ARM-Harith aims at raising $200 million toward sustainable infrastructure and energy transition projects, focusing on Nigeria.
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The ARM-Harith Successor Infrastructure Equity Fund is designed to address the region’s infrastructure financing gap. The fund raises capital in US dollars and Nigerian Naira, appealing to diverse investors, including local pension funds. Building on ARM-Harith’s successful 2015 fund, this initiative will expand its impact through sustainable infrastructure projects backed by the Bank.
The fund’s projects will deliver significant environmental, economic, and social benefits. Key goals include adding renewable energy capacity, reducing carbon emissions, and creating job opportunities while improving energy access for households. By promoting innovation and first-of-a-kind infrastructure developments, the initiative will further strengthen energy transition efforts in the region.
Wale Shonibare, Director for Energy Financial Solutions at the African Development Bank said, “This investment in the ARM-Harith Successor Infrastructure Equity Fund represents a significant step forward in our collective effort to build sustainable infrastructure across Africa.
He added, “The partnership with ARM-Harith, coupled with SEFA’s catalytic role, demonstrates the power of collaboration in mobilising private sector investment (including local currency) and achieving lasting positive impact for communities across the continent.”
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The Bank’s investment supports its High Five priorities, including Light Up and Power Africa, Industrialize Africa, and improve lives. It invests in the New Deal on Energy, the Climate Change Action Plan, and Mission 300 to 2030. Such investment is also consistent with the African Development Bank’s 2024-2033 strategy, which fosters sustainable growth and attracts private sector financing into renewables.
