Categories: AfricaBusiness

AfDB Invests $30M to Fund Renewable Energy Across Africa

The African Development Bank Group (AfDB) has allocated a $30 million equity investment in Africa Finance Corporation (AFC) to finance climate action projects across Africa. This fund, has been directed to an innovative green shares’ program, where AfDB owns shares.

This investment allocated to AFC aims to bolster the development of renewable energy initiatives, across some African states including Djibouti and Egypt by injecting efforts on wind and solar power plants. Also, the investment will support energy storage systems in Cape Verde while leveraging additional debt funding from capital markets for sub-projects.

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The initiative addresses Africa’s infrastructure financing gap of $170 billion annually and climate resilience challenges despite the continent contributing less than three percent of global carbon emissions.

According to AfDB’s Vice President,
Solomon Adegbie-Quaynor and AFC’s Executive Board Member Banji Fehintola, CFA, this first-mover investment is expected to attract additional regional and global investors

Besides, the investment plan aims to handle long-term visions 2030 of African states via establishing an ecosystem of sustainable financing in Africa.

Branislav Moses Opudo

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