The African Development Bank’s Board of Directors has approved a $30 million equity investment in Africa Finance Corporation (AFC) to support the rollout of innovative “green shares.” This initiative aims to mobilize resources for climate action projects across Africa, advancing the continent’s commitment to sustainable development.
The green shares program is designed to unlock funding for high-impact projects such as wind and solar power plants in Djibouti and Egypt, as well as energy storage systems in Cabo Verde. By using the funds as leverage, AFC will mobilize additional debt funding from capital markets to support sub-projects. The investment addresses Africa’s $170 billion annual infrastructure financing gap while tackling climate change challenges.
Africa contributes less than 3% of global carbon emissions, but it faces some of the most severe impacts of climate change. The African Development Bank’s investment in AFC’s green shares is a strategic step toward bridging the continent’s climate financing gap and building resilience. By fostering a system of sustainable financing, the initiative aims to create economic opportunities and strengthen Africa’s capacity to withstand climate-related shocks.
Several key figures have emphasized the significance of this investment. Solomon Quaynor, Vice President for Private Sector, Infrastructure, and Industrialisation at the African Development Bank, described the partnership as transformative. He stated, “The Bank Group’s first-mover investment in AFC’s green shares is expected to attract other regional and global investors, amplifying the impact of this initiative and sending a strong signal to global investors that Africa is ready to lead the way in green growth.”
Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, welcomed the African Development Bank’s support. “Their $30 million commitment highlights the critical role of sustainable financing in tackling Africa’s climate and infrastructure challenges while strengthening our shared mission to drive transformative change across the continent,” he said. He emphasized that the collaboration supports their shared vision of a prosperous and sustainable Africa.
Ahmed Attout, Director for Financial Sector Development at the African Development Bank, noted that this partnership marks a significant milestone. “This partnership with AFC is a major milestone in our efforts to channel domestic, regional, and global capital into projects that build climate resilience and foster sustainable growth,” he said.
The impact of this investment is expected to be far-reaching. It is projected to create over 1,600 full-time equivalent jobs by 2031. Beyond job creation, the initiative will drive inclusive growth and expand economic opportunities for marginalized communities, including women and rural populations. The projects supported through this initiative are also expected to foster regional integration and deliver clean, reliable energy to millions of African households.
This $30 million equity investment by the African Development Bank in AFC’s green shares program marks a milestone in Africa’s climate action efforts. By mobilizing resources for transformative projects, the initiative strengthens Africa’s leadership in sustainable development and climate resilience. The collaboration between the two institutions sets a precedent for attracting regional and global investors, advancing Africa’s green transition, and fostering a sustainable future for the continent.
