- The African Development Bank’s Board of Directors has approved a $30 million equity investment in Africa Finance Corporation (AFC) for the rollout of innovative “green shares” aimed at mobilising resources for climate action projects across Africa.
The innovative financial instruments are expected to unlock significant funding for high-impact projects, including wind and solar power plants in Djibouti and Egypt and energy storage systems in Cabo Verde. AFC will leverage the green equity and mobilise debt funding from capital markets for on-lending to sub-projects. The board approval took place on 11 December 2024.
Despite contributing less than 3% of global carbon emissions, Africa faces severe climate impacts and an annual infrastructure financing gap of $170 billion. The African Development Bank’s investment positions AFC to play a key role in establishing an ecosystem of sustainable financing that will bridge these gaps to create economic opportunities and enhance Africa’s climate resilience.
The investment is projected to contribute to the creation of over 1,600 full-time equivalent jobs by 2031, while also fostering regional integration, and generating clean, reliable energy to power millions of African households. It is also expected to drive inclusive growth and expand economic opportunities for marginalised populations, including women and rural communities.
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