AFC Gets AfDB’s $30m Equity Investment to Rollout Green Shares in Climate Projects

Green shares are innovative financial instruments to unlock significant funding for high-impact projects.

AFC will leverage the green equity and mobilise debt funding from capital markets for on-lending to sub-projects.

The AfDB board approval took place on December 11, 2024, as it seeks to play a key role in establishing an ecosystem of sustainable financing which will bridge gaps needed to create economic opportunities and enhance Africa’s climate resilience.

The finance is expected to inject some of this funding into some projects including wind and solar power plants in Djibouti and Egypt and energy storage systems in Cabo Verde.

The investment is also projected to create over 1,600 full-time equivalent jobs by 2031, while also fostering regional integration, and generating clean, reliable energy to power millions of African households. It is also expected to drive inclusive growth and expand economic opportunities for marginalised populations, including women and rural communities.

Despite contributing less than 3 per cent of global carbon emissions, Africa faces severe climate impacts and an annual infrastructure financing gap of $170 billion.

Mr Solomon Quaynor, African Development Bank Vice President for Private Sector, Infrastructure and Industrialisation said the collaboration between the two institutions exemplifies the transformative power of strategic partnerships.

“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,” he said.

“We are honoured to welcome the African Development Bank, Africa’s largest development finance institution, as the first investor in our Green Shares programme,” added Mr Banji Fehintola, Executive Board Member and Head of Financial Services at AFC.

“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. By working with a like-minded partner who shares our vision for a prosperous and sustainable Africa, we are advancing impactful solutions that support the continent’s green transition and long-term development,” he added.

Mr Ahmed Attout, the Bank’s Director for Financial Sector Development, stressed that, “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.”