In a significant development at COP28, global and African institutions, along with the governments of Germany, France, and Japan, joined forces with philanthropic organizations to pledge over $175 million to the Alliance for Green Infrastructure in Africa (AGIA). This landmark commitment aims to propel the financing of transformative climate-aligned infrastructure projects across the African continent, fostering a just and equitable transition to Net-Zero.
The AGIA, a collaborative effort involving the African Union Commission, the African Development Bank, Africa50, and other key partners, seeks to unlock up to $10 billion in private capital for green infrastructure projects. This financial injection will further AGIA’s mission to expedite Africa’s transition to Net-Zero, aligning with the 1.5°C target set forth in global climate agreements.
The impressive list of signatories to the memorandum of intent includes representatives from the African Development Bank, Africa50, France, Germany, Japan, the Arab Bank for Economic Development in Africa (BADEA), Banque Ouest-Africaine de Développement (BOAD), Proparco, and the Three Cairns Group. The ceremony was witnessed by esteemed leaders such as the Union of the Comoros President and Chairperson of the African Union, Azali Assoumani, Madagascar’s President Andry Rajoelina, and African Union Commission Chairperson Moussa Faki Mahamat.
Germany’s Minister for Economic Cooperation and Development, Mrs. Svenja Schulze, expressed her country’s enthusiasm, stating, “Germany is very pleased to join the launch of the Alliance for Green Infrastructure in Africa. We congratulate the African Development Bank on this important Africa-led initiative and want to highlight AGIA’s commitment to the 1.5 °C target and its dedication to accelerating Net-Zero emissions in Africa.”
She further emphasized, “Today marks an important step towards our shared goal of a just and equitable green transition in Africa. Supporting the commitment towards green infrastructure, we are planning to contribute up to €26 million to AGIA starting in 2024.”
Japan’s Deputy Vice-Minister of Finance, Tomoyoshi Yahagi, echoed this sentiment, declaring Japan’s commitment with a $10 million pledge. He said, “As part of the pledge made by Prime Minister Fumio Kishida yesterday, Japan will provide US$10 million to AGIA to support Africa in undergoing a just and equitable transition to Net-Zero and achieving the 1.5 °C pathway. We encourage other donors to contribute to this important initiative.”
Emmanuel Moulin, Director General of the French Treasury, highlighted the role AGIA will play in Africa’s transition to Net-Zero, stating, “By addressing the gap in funding green infrastructure project preparation and development, AGIA will play an instrumental role in Africa’s transition to Net-Zero. Directing concessional resources to such an initiative is in line with France’s vision and solidarity policy for sustainable investment in Africa.”
France pledged a substantial €20 million to AGIA, showcasing its commitment to sustainable development on the continent. Moulin expressed hope that France’s contribution would catalyze more private and concessional resources.
African Development Bank Group President Dr. Akinwumi Adesina emphasized the need for private sector financing to address climate change and Africa’s significant infrastructure gap sustainably. He announced the Bank Group’s plans to contribute up to $40 million, pending approval from its Board of Directors.
Sidi Ould Tah, President of BADEA, shared his organization’s commitment, saying, “We have pledged $40 million to support AGIA. We are glad to be part of this vital partnership, aiming at enabling transformational green infrastructure projects in Africa, and accelerating the continent’s transition to Net-Zero in a sustainable manner.”
AGIA’s role as Africa’s largest fund focused on project development was underscored by Africa50 CEO Alain Ebobissé. He highlighted the importance of AGIA in scaling up the delivery of bankable green projects and helping the continent achieve its climate goals.
Serge Ekué, President of BOAD, linked BOAD’s commitment to AGIA with their strategic plan for 2021–2025, emphasizing the aim of allocating 25% of new financing to strengthen member countries’ resilience to climate change.
Françoise Lombard, CEO of Proparco, expressed pride in supporting AGIA and its innovative blended structure. She stated, “With AGIA, we are one step closer to bridging the infrastructure gap in Africa and one-step further towards Net-Zero.”
Mark Gallogly, cofounder of the Three Cairns Group, praised AGIA’s mission to catalyze economic development and green infrastructure in Africa. He stressed the importance of more risk-tolerant, early-stage equity to increase the number of clean energy and climate-related projects across the continent.
AGIA, launched a year ago at COP27 in Sharm El Sheikh, Egypt, has garnered widespread support from key stakeholders. The momentum gained at COP28 reinforces AGIA’s position as a vital initiative for driving sustainable and climate-resilient development in Africa. The pledged funds will contribute significantly to AGIA’s goal of achieving $500 million in early-stage project preparation and development blended capital, ultimately shaping a greener and more resilient future for the African continent.