The African Development Bank has announced a $30 million equity investment in the Africa Finance Corporation to support climate action projects across the continent, aiming to bolster the future of green energy in Africa.
The funds will be directed towards initiatives that promote the use of green energy, including solar power plants and energy storage systems.
This investment is linked to AFC’s green shares program. Through this initiative, various projects will be supported, such as wind and solar power plants in Egypt and Djibouti, as well as energy storage systems in Cape Verde, alongside innovative financial instruments.
By 2031, this investment is expected to create over 1,600 full-time equivalent jobs, foster regional integration, and provide clean, reliable energy to millions of African households.
Despite contributing only 3% of global carbon emissions, Africa faces a variety of climate challenges, making this investment crucial for enhancing the continent’s climate resilience and creating a sustainable financing ecosystem.
Solomon Quaynor, the African Development Bank’s Vice President for Private Sector, Infrastructure, and Industrialization, summarized the partnership between AfDB and AFC by saying,
“The partnership between the African Development Bank and Africa Finance Corporation exemplifies the transformative power of strategic alliances.”
“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.”