ABIDJAN, Ivory Coast – The African Development Bank’s (AfDB) Board of Directors has approved a $30 million equity investment in the Africa Finance Corporation (AFC) for the launch of innovative “green shares,” designed to mobilize funding for climate action projects across Africa.
This groundbreaking financial instrument is expected to attract substantial resources for transformative projects, including wind and solar power plants in Djibouti and Egypt, as well as energy storage systems in Cabo Verde. AFC will utilize the green equity investment to leverage debt funding from capital markets, which will be channeled toward sustainable sub-projects. The Board’s approval was finalized on December 11, 2024.
Despite contributing less than 3% of global carbon emissions, Africa faces severe climate challenges alongside an annual infrastructure financing deficit of $170 billion. The African Development Bank’s investment positions AFC to lead the charge in establishing sustainable financing ecosystems that bridge this gap, create economic opportunities, and bolster climate resilience across the continent.
Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialization, highlighted the importance of this collaboration:
“The partnership between the African Development Bank and the Africa Finance Corporation showcases the transformative power of strategic alliances. The Bank Group’s first-mover investment in AFC’s green shares will attract regional and global investors, amplifying this initiative’s impact and signaling to the world that Africa is ready to lead in green growth.”
Banji Fehintola, AFC Executive Board Member and Head of Financial Services, expressed appreciation for AfDB’s role in launching the program:
“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 underscores the critical role of sustainable financing in addressing Africa’s climate and infrastructure challenges. By partnering with a like-minded institution, we are advancing impactful solutions to support Africa’s green transition and long-term development.”
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Ahmed Attout, AfDB’s Director for Financial Sector Development, described the partnership as a significant milestone:
“This collaboration with AFC is pivotal in channeling domestic, regional, and global capital into projects that build climate resilience and drive sustainable growth across Africa.”
The investment is projected to generate significant socio-economic benefits, including the creation of over 1,600 full-time equivalent jobs by 2031, greater regional integration, and expanded access to clean and reliable energy for millions of African households. Additionally, the initiative will drive inclusive growth, providing economic opportunities for marginalized populations, including women and rural communities.
Media Contacts:
Africa Finance Corporation
Yewande Thorpe
Mobile: +234 1 279 9654
Email: yewande.thorpe@africafc.org
African Development Bank
Olufemi Terry, Communication and External Relations Department, Email: media@afdb.org
About the African Development Bank Group:
The African Development Bank Group is Africa’s leading development finance institution, comprising the African Development Bank, the African Development Fund (ADF), and the Nigeria Trust Fund (NTF). Operating in 41 African countries and with a regional office in Japan, the Bank drives economic development and social progress across its 54 member states.
About Africa Finance Corporation
Established in 2007, the Africa Finance Corporation (AFC) serves as a catalyst for infrastructure and industrial investments across Africa. Combining financial and technical expertise, AFC focuses on project development, structuring, and risk capital to address Africa’s infrastructure needs and promote sustainable economic growth. With investments of over $13 billion across 43 member countries, AFC delivers essential services in sectors including power, transport, telecommunications, natural resources, and heavy industry.
SOURCE: Africa Finance Corporation (AFC)
