AfDB pledges $40m to accelerate Africa’s green infrastructure projects

The African Development Bank Group (AfDB) has committed $40 million to the Alliance for Green Infrastructure in Africa – Project Development Fund (AGIA-PD), anchoring the Fund’s first close of $118 million aimed at fast-tracking climate-resilient infrastructure across the continent.

The AGIA-PD, managed by Africa50, seeks to mobilise $400 million in blended early-stage financing to prepare a pipeline of bankable projects in renewable energy, sustainable transport, water systems, and digital infrastructure. It forms part of the wider AGIA initiative, led by the AfDB, African Union Commission, and Africa50, which targets $500 million to unlock $10 billion in green investment opportunities.

The Bank’s $40 million package includes $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from the Sustainable Energy Fund for Africa.

“This investment represents more than capital. It is a bold declaration that the Bank stands ready to share early-stage risk alongside our partners,” said Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure and Industrialization. “Our blended-finance model is designed to mobilise billions in private-sector investment for Africa’s low-carbon and climate-resilient infrastructure.”

The Fund’s backers include KfW, the West African Development Bank (BOAD), the UK’s Foreign, Commonwealth & Development Office, the Three Cairns Group, and the Soros Economic Development Fund.

Africa50 CEO, Alain Ebobissé, described the milestone as proof of AGIA’s progress since its launch at COP27. “By unlocking early-stage capital, AGIA will help accelerate the development of bankable green infrastructure projects, strengthen local capacity, and pave the way for a more sustainable, resilient, and prosperous Africa,” he said.

UK Minister of State for Development, Jenny Chapman, said the investment will support African-led projects such as solar farms and water treatment plants, creating growth while tackling the effects of climate change.

Christine de Barros Said of the German Embassy in Maputo noted that Germany, through KfW, is contributing €26 million to drive green infrastructure investments that foster economic growth and job creation.

BOAD President Serge Ekue reaffirmed the Bank’s commitment to closing Africa’s infrastructure gap, while Three Cairns Group co-founder Mark Gallogly called the first close “a significant milestone” in scaling clean energy. Georgia Levenson Keohane, CEO of the Soros Economic Development Fund, described AGIA as “a critically important Africa-led partnership” for driving inclusive, sustainable development.