The fund aims to use blended structures to help mobilise private investment in green infrastructure projects across Africa.
The Alliance for Green Infrastructure in Africa’s Project Development Fund (AGIA-PD) has achieved a first close of $118m (€101m), backed by commitments from the African Development Bank (AfDB), and UK and German government agencies among other investors, fund manager Africa50 said.
The fund is seeking to raise up to $400m of early-stage project development capital to fund climate-resilient infrastructure projects using public, commercial, and philanthropic capital. Target areas for investment include energy, sustainable transport, and tech industries.
The first close includes commitments from the AfDB, the 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 first close was announced during Africa50’s general shareholders meeting in Maputo, Mozambique, with representatives of the investment group in attendance.
Africa50 said the diverse group of high-profile investors indicated that investing in the green infrastructure development in Africa was increasingly deemed to be viable.
The Project Development Fund forms part of the wider AGIA initiative, which Africa50, the African Union Commission and the African Development Bank launched at the COP27 climate summit in Egypt in 2022, with the objective of generating up to $10bn in investment opportunities for the private sector.
Funding focus
“Since the unveiling of the initiative at COP27, AGIA has moved from ambition to execution, and this first close of the AGIA Project Development Fund is a powerful testament to that progress,” Alain Ebobissé, Africa50’s CEO, said.
Solomon Quaynor, the AfDB’s vice president for private sector, infrastructure and industrialisation, said the Abidjan-based multilateral institution’s $40m commitment would include grants, junior equity, and commercial equity.
“The resources will be deployed for co-developments with both emerging and established developers, ensuring a diverse and scalable pipeline,” he said.
Mark Gallogly, co-founder of Three Cairns Group, which backs the African Climate Foundation, said the lack of bankable projects remained a persistent barrier to scaling clean energy and climate-resilient infrastructure across Africa.
“AGIA’s first close marks a significant milestone in tackling this challenge. We are proud to support this effort and to see catalytic capital flow into early-stage project development — a critical enabler for unlocking economic vitality on the continent,” he said.
Africa50 was established as investment platform to mobilise private investment into infrastructure projects in Africa. Its shareholders include 33 African countries, the African Development Bank, the Central Bank of West African States, Bank Al-Maghrib, and the Public Investment Corporation of South Africa.
Africa50 announced the first close of another vehicle, the Infrastructure Acceleration Fund, at $225.5m, in January 2024. With funding mainly from African institutional investors, that 12-year closed-ended infrastructure-focused private equity fund is looking for opportunities in power, energy, transportation, logistics, water, sanitation, and digital and social infrastructure.
