COP28 Witnesses a $175 Million Pledge to AGIA for Green Infrastructure in Africa

The recently concluded Conference of the Parties (COP28) in Dubai witnessed a landmark commitment to addressing climate change. In an effort to promote green infrastructure in Africa, global and African partners have pledged $175 million to the Alliance for Green Infrastructure in Africa (AGIA), just one year after its launch at COP27. This initiative is a collaborative endeavor involving the African Union Commission, the African Development Bank, Africa50, and various key public and private stakeholders.

The noteworthy commitment toward Africa’s transition to Net-Zero was announced by both African and global institutions, along with the governments of Germany, France, and Japan. This substantial fund is allocated for early-stage project preparation and development blended capital, with the aim of AGIA’s first close at $500 million.

The historic signing ceremony at COP28 was attended by world leaders, including the President of the Union of the Comoros and Chairperson of the African Union, Azali Assoumani, Madagascar’s President Andry Rajoelina, and African Union Commission Chairperson Moussa Faki Mahamat. Representatives from key signatories, such as the African Development Bank, Africa50, France, Germany, Japan, the Arab Bank for Economic Development in Africa (BADEA), Banque Ouest-Africaine de Développement (BOAD), Proparco, and the Three Cairns Group, formalized their commitments.

Leaders from Germany, Japan, and France commended AGIA’s efforts toward the 1.5°C target and accelerating Net-Zero emissions. Germany’s Minister for Economic Cooperation and Development, Mrs. Svenja Schulze, announced Germany’s commitment to contribute up to €26 million to AGIA, starting in 2024.

Japan’s Deputy Vice-Minister of Finance, Tomoyoshi Yahagi, stated that Japan would provide US$10 million, and France, through the Director General of Treasury, Emmanuel Moulin, announced a contribution of €20 million, recognizing AGIA’s crucial role in addressing the funding gap for green infrastructure project preparation and development in Africa.

The President of the African Development Bank Group, Dr. Akinwumi Adesina, emphasized at COP28 on the need for private sector financing at scale to tackle climate change and address Africa’s infrastructure gap sustainably. The Bank Group plans to contribute up to $40 million to AGIA, subject to approval from its Board of Directors.

Sidi Ould Tah, President of BADEA, pledged $40 million to support AGIA, expressing enthusiasm for being part of this vital partnership that aims to enable transformational green infrastructure projects in Africa. Alain Ebobissé, Africa50 CEO, highlighted AGIA’s potential to become Africa’s largest fund focused on project development, critical for scaling up the delivery of bankable green projects.

Françoise Lombard, CEO of Proparco, expressed pride in supporting AGIA, emphasizing its potential to unlock Africa’s potential for green infrastructure. Proparco, alongside the French government, announced a contribution to AGIA, aiming to bridge the infrastructure gap in Africa and move closer to net zero as called for in COP28.

Mark Gallogly at COP28, co-founder of the Three Cairns Group, commended AGIA’s mission to catalyze economic development and green infrastructure in Africa. He stressed the importance of risk-tolerant, early-stage equity in increasing the number of clean energy and climate-related projects across the continent.

AGIA’s journey, initiated a year ago at COP27, has now reached a significant milestone with the substantial pledges made at COP28. The support from global and African partners, governments, and philanthropic organizations underscores a collective commitment to driving sustainable, climate-resilient infrastructure development in Africa.

As AGIA progresses toward its goal of unlocking up to $10 billion in private capital for green infrastructure projects, the pledges announced at COP28 mark a pivotal moment in advancing Africa’s just and equitable transition to net zero

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