The African Development Bank (AfDB) has granted a $30 million equity investment in Africa Finance Corporation (AFC) to help launch its green shares initiative. This funding aims to gather resources for climate action across the country. The approval was granted on December 11, 2024, marking a financing gap and boosting climate resilience.
The green shares will finance major projects, such as wind and solar power plants in Djibouti, Egypt and Cabo Verde. AFC will leverage this equity investment and mobilize debt funding from capital markets to finance various African sub-projects.
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Addressing Africa’s Infrastructure and Climate Challenges
Africa contributes under 3% of global emissions but faces severe climate impacts and a $170 billion annual infrastructure gap. AfDB’s investment in AFC positions it to create a sustainable financing ecosystem, bridging gaps and generating economic opportunities across Africa.
Solomon Quaynor, the African Development Bank’s 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.”
He added, “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.”
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Strengthening Africa’s Green Transition
This partnership supports AfDB’s strategy to direct capital into projects that promote climate resilience, sustainable growth, and green energy in Africa.
The AfDB’s investment will create over 1,600 full-time equivalent jobs by 2031, driving both regional integration and clean energy generation. The initiative will deliver renewable energy to millions of African households, boosting inclusive growth and economic opportunities for marginalized groups.