• AfDB injects USD 40 million into AFC and Harith’s infrastructure fund for green projects.
• Projects align with the Paris Agreement and Agenda 2063, focusing on emissions reductions and low-carbon growth.
• Initiatives promise job creation, sustainable urbanization, and increased investor confidence in Africa’s green future.

A Green Boost: Turning Dollars into Climate Solutions

The African Development Bank (AfDB) is making waves with a combined USD 40 million equity investment aimed at climate action and sustainable infrastructure. This initiative includes two critical components: a USD 30 million investment in the Africa Finance Corporation (AFC) and a USD 10 million contribution through its Sustainable Energy Fund for Africa (SEFA) to support Harith General Partners’ infrastructure fund.

“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.”

Ahmed Attout, AfDB Director for Financial Sector Development

By focusing on green infrastructure, AFC integrates sustainable practices into high-impact sectors like energy and transportation. On the other hand, SEFA’s USD 10 million investment anchors the Harith Infrastructure Fund, which prioritizes renewable energy and low-carbon development projects.

Together, these investments aim to bridge the financing gap in climate-related projects, ensuring that Africa can tackle its unique climate and development challenges head-on.

Disrupting the Status Quo: Climate Leadership Through Collaboration

Africa, contributing less than 4% of global greenhouse gas emissions, is disproportionately affected by climate change. Yet, financing green development projects remains a persistent challenge. This USD 40 million initiative by AfDB represents a vital step in changing this narrative.

The investments support the Paris Agreement and the African Union’s Agenda 2063, focusing on low-carbon, climate-resilient development. Moreover, AFC’s infrastructure expertise and SEFA’s renewable energy focus provide a dual advantage—scaling sustainable solutions across sectors.

According to AFC, green infrastructure projects funded under similar programs have already reduced CO₂ emissions by 25% in target regions. This partnership will likely accelerate that progress while addressing Africa’s growing energy and transportation demands.

The Future Blueprint: Laying the Foundation for Sustainability

This USD 40 million equity investment is a transformative leap for Africa’s green future. AfDB’s partnerships with AFC and Harith General Partners signal the start of a collaborative ecosystem, where public and private sectors coalesce around sustainable development goals.

As investor confidence grows, Africa stands poised to attract more international funds targeting clean energy and infrastructure. For instance, SEFA-backed initiatives have already unlocked over USD 1.5 billion in co-financing, demonstrating the potential for scalable success.

Looking ahead, these investments will not only reduce Africa’s carbon footprint but also create jobs, enhance energy access, and improve urban living standards. It’s a signal that Africa isn’t waiting for global handouts—it’s engineering its own climate revolution.