By Abdullahi Lukman
The African Development Bank Group and ILX Management B.V. have completed their first joint transaction, with a $40 million investment to support a major wind power project in Egypt.
The funding, structured as a risk participation in a senior debt facility arranged by the AfDB, contributes to a broader $140 million loan backing a 1.1-gigawatt renewable energy project.
The initiative is aimed at boosting electricity generation, reducing reliance on fossil fuels and supporting Egypt’s transition to cleaner energy.
The deal marks the first implementation of a 2023 partnership between the two institutions to mobilise European institutional capital for climate-focused infrastructure and private sector projects across Africa.
According to the AfDB, the project qualifies as climate mitigation finance and is expected to reduce emissions while easing power supply constraints linked to fuel shortages.
It will also help conserve foreign exchange by cutting fuel imports and increasing the share of renewable energy in Egypt’s energy mix.
AfDB President, Sidi Ould Tah, said the transaction highlights the importance of private sector investment in driving sustainable development and addressing Africa’s financing gaps. He noted that the partnership with ILX is designed to scale up long-term capital mobilisation for infrastructure and climate projects.
ILX Chief Executive Officer, Manfred Schepers, described the deal as a milestone, saying it demonstrates how collaboration with development finance institutions can attract large-scale pension investment into high-impact projects.
Officials said the partnership aligns with broader efforts to expand climate-resilient infrastructure, strengthen financial systems and support sustainable growth across the continent, while advancing global climate goals.