By Faridat Salifu
The Board of Directors of the African Development Bank (AfDB) Group says recently approved a $10 million equity investment in the Alliance for Green Infrastructure in Africa-Project Development Fund (AGIA-PD).
The investment, which was announced on January 24, 2024, has now been approved and marks the first tranche of a $40 million commitment made by the bank at the 28th United Nations Climate Conference (COP28) in Dubai in December 2023.
AGIA-PD, a component of the Alliance for Green Infrastructure in Africa (AGIA), is a $10 billion initiative led by the AfDB in collaboration with key partners such as the African Union Commission (AUC) and Africa50.
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The fund aims to accelerate Africa’s green transition by facilitating the development of transformative green and resilient infrastructure projects at a rapid pace and large scale.
Aligned with recipient countries’ Nationally Determined Contributions (NDCs) and the AfDB’s strategic priorities, AGIA-PD focuses on project preparation and development to ensure the realization of green infrastructure projects.
This initiative seeks to mobilize $100 million in grants for project preparation activities and $400 million in mixed capital to transform green infrastructure project concepts into bankable opportunities.
The ultimate goal of AGIA is to facilitate the mobilization of ten billion dollars of financing, including equity, loans, and risk mitigation instruments, to support the large-scale financing of green infrastructure projects prepared and developed under its framework.
Through these efforts, AGIA aims to contribute significantly to Africa’s sustainable development and the achievement of climate-resilient infrastructure across the continent.
