Investment Fund AGIA-PD successfully obtains $118 million in initial funding to establish climate-resilient infrastructure across Africa.

In a significant move for the African continent, the Alliance for Green Infrastructure in Africa's (AGIA) Project Development Fund (AGIA-PD) has achieved a first close of $118 million (€101 million). This development was announced during Africa50's general shareholders meeting in Maputo, Mozambique.

The AGIA-PD fund, a component of the broader AGIA initiative launched at the COP27 climate summit in Egypt in 2022, aims to raise up to $400 million for early-stage project development capital. The fund targets climate-resilient infrastructure projects in sectors like energy, sustainable transport, and technology.

Solomon Quaynor, Vice President for private sector, infrastructure, and industrialization at the African Development Bank (AfDB), highlighted that the funds would be used for co-developments with both emerging and established developers. The AfDB has committed $40 million to the AGIA-PD fund, with the funds to be distributed as grants, junior equity, and commercial equity.

Alain Ebobissé, CEO of Africa50, expressed that the first close of the AGIA-PD fund marks a powerful testament to the progress made since the initiative's unveiling at COP27. Mark Gallogly, co-founder of Three Cairns Group, echoed this sentiment, stating that the AGIA-PD fund's first close is a significant milestone in addressing the challenge of scaling clean energy and climate-resilient infrastructure across Africa.

The AGIA initiative aims to generate up to $10 billion in investment opportunities for the private sector, primarily focused on projects that enhance Africa's climate resilience. The Infrastructure Acceleration Fund, an infrastructure-focused private equity fund primarily supported by African institutional investors, is separate from the AGIA-PD fund. Africa50 announced a first close of another fund, the Infrastructure Acceleration Fund, at $225.5 million in January 2024.

The second close of the Infrastructure Acceleration Fund by Africa50 is expected to occur in 2024. The diverse set of investors in the AGIA-PD fund underscores the growing recognition that green infrastructure development in Africa is becoming a more viable investment opportunity. The investors include the AfDB, German Development Cooperation via KfW, the UK's Foreign, Commonwealth and Development Office, the West African Development Bank, the Soros Economic Development Fund, and the African Climate Foundation.

The funding achievement is a positive step towards enhancing Africa's climate resilience and promoting sustainable development. The projects funded by these funds are expected to contribute significantly to Africa's green infrastructure landscape, particularly in sectors like energy, transport, and technology.

Investment Fund AGIA-PD successfully obtains $118 million in initial funding to establish climate-resilient infrastructure across Africa.