The African Development Bank (AfDB) has approved $30 million equity investment in the Africa Finance Corporation (AFC) for the rollout of “green shares.”
- The investment is aimed at mobilising resources for climate action projects.
- The financial instruments are expected to unlock significant funding for high-impact projects, including wind and solar power plants in Djibouti and Egypt and energy storage systems in Cabo Verde.
- The investment is projected to contribute to the creation of over 1,600 full-time equivalent jobs by 2031.
“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,” Banji Fehintola, Executive Board Member and Head of Financial Services at AFC.
AFC will leverage the green equity and mobilise debt funding from capital markets for on-lending to sub-projects. Green shares are part of a broad types of shares that includes green chip stocks in environmentally-friendly companies.
“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,” Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure and Industrialisation added.
