The African Development Bank (AfDB) has announced a $30 million investment in the Africa Finance Corporation (AFC) to boost green energy projects across Africa. This investment, approved by the AfDB’s Board of Directors, is part of a broader effort to fund climate action initiatives on the continent. It will support AFC’s Green Shares program, which finances renewable energy projects like solar, wind, and energy storage solutions in countries such as Djibouti and Egypt.
Africa is currently facing major climate challenges while contributing less than 3% of global carbon emissions. At the same time, the continent struggles with an annual infrastructure financing gap of around $170 billion. Through this investment, the AfDB aims to bridge this gap by creating a reliable financing system that promotes economic opportunities and builds resilience against climate impacts.
The Green Shares program focuses on attracting funding for renewable energy projects that align with the Sustainable Development Goals (SDGs). Solomon Quaynor, AfDB’s Vice President for Private Sector, Infrastructure, and Industrialization, stressed the importance of this partnership. He explained that it sends a clear message to global investors about Africa’s commitment to sustainable development. Quaynor added that working with AFC demonstrates how collaboration can unlock much-needed capital for Africa’s green energy transition.
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Banji Fehintola, Executive Board Member at AFC, underscored the value of sustainable financing in Africa’s growth. He noted that the AfDB’s investment strengthens a shared vision of promoting practical solutions to tackle climate and infrastructure challenges. The impact of this funding is expected to be far-reaching. By 2031, it could create over 1,600 full-time jobs and expand clean energy access to millions of households across Africa.
The Green Shares initiative aims to attract more investors from across the region and globally. By funding renewable energy and infrastructure projects, this program shows Africa’s growing potential to play a key role in tackling the global climate crisis. The AfDB’s investment goes beyond financial support—it’s a strategic move toward building a solid foundation for Africa’s long-term sustainable development.
This initiative also highlights the role of innovative financing in driving climate action. The collaboration between AfDB and AFC is an example of how public and private sector partnerships can successfully mobilize resources for impactful projects. Combining their expertise allows these institutions to drive economic growth while addressing environmental challenges.
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As Africa continues to push toward a greener future, investments like this are essential for solving energy poverty and climate-related challenges. By financing projects that promote clean energy, the AfDB and AFC partnership helps Africa move closer to a sustainable and prosperous future.
In summary, the AfDB’s $30 million investment in AFC’s Green Shares program marks an important step in advancing green energy solutions in Africa. This initiative supports projects that address climate change, close infrastructure gaps, and drive economic growth. By improving energy access and creating jobs, this investment holds the potential to transform lives across the continent. It also serves as a blueprint for future investments in renewable energy, setting the stage for a cleaner and more resilient Africa.
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