The African Development Bank (AfDB) Board of Directors has approved a $30 million equity investment in Africa Finance Corporation (AFC) to support climate action projects across Africa.
The investment will fund AFC’s innovative green shares program, designed to unlock significant capital for high-impact initiatives such as solar and wind power plants in Djibouti and Egypt, and energy storage systems in Cabo Verde. AFC will leverage this equity to mobilize debt funding from capital markets, financing sustainable sub-projects across the continent.
The initiative aims to generate clean energy for millions of households, create over 1,600 full-time jobs by 2031, and foster regional integration. It also seeks to drive inclusive growth by expanding economic opportunities for marginalized groups, including women and rural communities.
Africa faces an annual infrastructure financing gap of $170 billion and bears the brunt of severe climate impacts despite contributing less than 3% of global carbon emissions. The AfDB’s investment positions AFC as a leader in establishing sustainable financing solutions to bridge these gaps and bolster climate resilience.
Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialisation, highlighted the partnership’s significance, stating:
“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 that Africa is ready to lead the way in green growth.”
Banji Fehintola, AFC’s Executive Board Member and Head of Financial Services, expressed gratitude for the AfDB’s support, saying:
“This $30 million commitment underscores the vital role of sustainable financing in addressing Africa’s climate and infrastructure challenges while advancing transformative solutions for a green and prosperous Africa.”
Ahmed Attout, AfDB’s Director for Financial Sector Development, described the partnership as a milestone in channeling domestic, regional, and global capital into climate-resilient projects that promote sustainable growth.
This collaboration between AfDB and AFC exemplifies the transformative power of strategic partnerships, offering a roadmap for green growth and long-term development across the continent.
