The African Development Bank (AfDB) has proposed the establishment of an initiative to support the investment and development of green and sustainable infrastructure in Africa.
Created in partnership with investment fund Africa50, the African Union Commission and the African Union Development Agency, the Alliance will support the continent’s energy transition while addressing energy poverty continent wide.
Proposed at the 6th European Union-African Union Summit- which was held in Brussels in Belgium – by AfDB President Dr Akinwumi A. Adesina, the Alliance for Green Infrastructure in Africa comprises two strategic objectives, namely, developing and funding a robust pipeline of bankable green infrastructure projects: and catalysing the financing of green infrastructure projects both rapidly and at scale.
Comprising three categories of project developers – specifically, a scaled up Africa50; Africa50 in co-development with local partners; and established third-party private developers – the initiative will leverage private sector expertise and capital to accelerate green energy developments in Africa.
According to the AfDB, the Alliance aims to raise up to $500 million, primarily for early-state project development and preparation, which, in turn, will open up to $10 billion in investment opportunities. The initiative will also support project developers through to commercial and financial close.
Already there has been growing interest from international investment institutions including the European Investment Bank, the European Bank for Reconstruction and Development and the Rockefeller Foundation, all of which have expressed their interest in joining the Alliance. Both local and international partners will be critical for the Alliance as it moves to enhance Africa’s green infrastructure landscape and eradicate energy poverty.