The African Development Bank’s (AfDB) Board of Directors has approved a $30 million equity investment in the Africa Finance Corporation (AFC) to accelerate climate action projects across the continent through the rollout of innovative “green shares.” This investment, approved on December 11, 2024, aims to mobilize significant financial resources for renewable energy and climate-resilient infrastructure.
The green shares initiative will support high-impact projects, including the development of wind and solar power plants in Djibouti and Egypt, as well as energy storage systems in Cabo Verde. AFC plans to leverage this green equity investment to attract additional debt funding from global capital markets, channeling resources to transformative sub-projects across Africa.
Despite contributing less than 3% of global carbon emissions, Africa faces disproportionate climate impacts coupled with a $170 billion annual infrastructure financing gap. The AfDB’s investment positions AFC as a key player in bridging this gap by fostering an ecosystem of sustainable financing, creating economic opportunities, and enhancing climate resilience across the continent.
Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialization, emphasized the importance of partnerships.
“The collaboration between the African Development Bank and Africa Finance Corporation exemplifies the transformative power of strategic partnerships. 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.” said Solomon.
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Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, expressed gratitude for the partnership.
“We are honored to welcome the African Development Bank, Africa’s largest development finance institution, as the first investor in our Green Shares program. Their $30 million commitment highlights the critical role of sustainable financing in tackling Africa’s climate and infrastructure challenges, while strengthening our shared mission to drive transformative change across the continent.” Banji stated.
Ahmed Attout, AfDB’s Director for Financial Sector Development, described the partnership as a “major milestone” in attracting domestic, regional, and global capital into climate-resilient projects.
The investment is expected to yield substantial benefits, including the creation of over 1,600 full-time jobs by 2031, improved regional integration, and the generation of clean, reliable energy for millions of African households. It also aims to promote inclusive growth, expanding opportunities for women, rural communities, and other marginalized populations.
