The African Development Bank has approved a one hundred million dollar loan to the Emerging Africa and Asia Infrastructure Fund to strengthen sustainable infrastructure development across the continent. The announcement, published on the Bank’s website, explains that the financing is designed to unlock more private capital and support transformative projects in renewable energy, transport, digital connectivity, and other sectors that are vital to Africa’s economic growth.
The facility, approved by the Bank’s Board of Directors, forms part of a wider strategy to close Africa’s growing infrastructure financing gap and promote more resilient and inclusive development. It also fits into the Fund’s broader debt-raising programme through which it plans to secure three hundred million dollars in long-term capital in 2025 and deploy more than eight hundred and fifty million dollars across Africa and Asia by 2027. Although the Bank did not state the specific countries that will benefit, the approval signals continued support for frontier and developing markets that struggle to attract long-term financing.
The Bank described the partnership as a strategic step toward financing the kind of projects that power economies and create jobs. It noted that the loan will strengthen the Fund’s ability to deliver more renewable energy, digital infrastructure, and transport projects capable of reducing poverty and improving lives across the continent.
The Emerging Africa and Asia Infrastructure Fund, which operates under the Private Infrastructure Development Group and is managed by Ninety One, has become an important platform for mobilising private investors into markets they often consider high-risk. This latest facility marks the Bank’s fourth loan to the Fund, reinforcing a long-running relationship.
The Bank’s renewed commitment comes at a time when it is increasing support for innovative financial instruments. In September, it approved a twenty-five million dollar equity investment in The Currency Exchange Fund to expand access to local currency financing for African businesses. Since 2007, The Currency Exchange Fund has hedged more than seventeen billion dollars in notional amounts, including over four billion dollars across thirty-one African countries, helping MSMEs and infrastructure developers reduce exposure to currency volatility.
Earlier in August, the Bank also announced a five point five billion dollar framework to accelerate sustainable growth and infrastructure rollout across Africa, working with the Japan International Cooperation Agency to leverage private sector investment finance.
For small businesses and emerging enterprises across the continent, the new loan signals a stronger push toward better infrastructure, improved digital access, and more reliable energy systems. These are the foundations that allow MSMEs to grow, compete, and access regional and global markets.
By drawing more private capital into long-term development projects, the Bank aims to ease the bottlenecks that limit expansion for many African entrepreneurs and to create a more enabling business environment capable of driving inclusive economic growth.
