The African Development Bank (AfDB) has announced a $40 million investment in blended capital for the Alliance for Green Infrastructure in Africa (AGIA) – Project Development Fund, anchoring the fund’s first close of $118 million.
The initiative, led by the AfDB, the African Union (AU) Commission and Africa50, aims to unlock a pipeline of investment-ready green infrastructure projects across the continent.
“This milestone marks a new era towards mobilizing blended capital in project development, to unlock a robust pipeline of investment-ready green infrastructure projects across the continent,” the bank said in a statement on Wednesday.
The AGIA-PD brings together a coalition of development finance institutions, public agencies, philanthropic organisations and private investors. Key partners include KfW, the West African Development Bank (BOAD), the UK’s Foreign, Commonwealth & Development Office (FCDO), and the Soros Economic Development Fund.
The AfDB’s $40 million commitment comprises $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from the Sustainable Energy Fund for Africa, which the Bank administers. According to the bank, this underscores its leadership in de-risking early-stage projects and catalysing private investment into infrastructure.
Solomon Quaynor, AfDB vice-president for private sector, infrastructure and industrialisation, said the investment would pioneer a comprehensive approach to unlock Africa’s green infrastructure potential.
“This investment represents more than capital. It is a bold declaration that the Bank stands ready to share early-stage risk alongside our partner,” Quaynor said.
“The resources will be deployed for co-development with both emerging and established developers, ensuring a diverse and scalable pipeline. Our blended-finance model is designed to mobilise billions in private-sector investment for Africa’s low-carbon and climate-resilient infrastructure.”
Alain Ebobissé, Africa50 chief executive officer (CEO), described the first close of the project development fund as proof of progress since the initiative was unveiled at COP27.
“We are deeply grateful to our founding partners and investors for their trust and commitment,” Ebobissé said.
“By unlocking early-stage capital, AGIA will help accelerate the development of bankable green infrastructure projects, strengthen local capacity, and pave the way for a more sustainable, resilient, and prosperous Africa.”
He added that Africa50 is proud to serve as fund manager and drive the initiative forward.
Boluwatife Enome
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