The governments of Germany, France, and Japan, as well as philanthropies, have contributed over $175 million to the Alliance for Green Infrastructure in Africa (AGIA) as part of a strong show of support for COP28. The historic first commitment will contribute to the quickening of finance for innovative infrastructure projects throughout the continent that are in line with climate change.
The additional commitments will help AGIA get closer to its first close of $500 million in blended financing for early-stage project preparation and development. The African Development Bank, Africa50, the African Union Commission, and other organizations are partners in the Alliance. It aims to stimulate international action to hasten Africa’s just and equitable transition to Net-Zero and to release up to $10 billion in private finance for green infrastructure projects.
Representatives from 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 Foundation were among those who signed the memorandum of intent.
The signing ceremony was seen by President Andry Rajoelina of Madagascar, Chairperson of the African Union Commission Moussa Faki Mahamat, and President Azali Assoumani of the Union of the Comoros.
Svenja Schulze, Germany’s Minister for Economic Cooperation and Development, stated, “We are delighted to have Germany involved in the Alliance for Green Infrastructure in Africa’s start. We would like to express our gratitude to the African Development Bank for spearheading this significant Africa-led project and to AGIA for its unwavering commitment to the 1.5°C target and to accelerating Net-Zero emissions in Africa
“Today represents a critical step towards our shared goal of a just and equitable green transition in Africa,” she continued. We intend to support AGIA’s commitment to green infrastructure by giving it up to €26 million beginning in 2024.
“As part of the pledge made by Prime Minister Fumio Kishida yesterday, Japan will provide US$10 million to AGIA to support Africa in undergoing a just and equitable transition to Net-Zero and achieving the 1.5°C pathway,” stated Tomoyoshi Yahagi, Japan’s Deputy Vice-Minister of Finance. We invite other contributors to support this worthwhile endeavor.
“AGIA will play an instrumental role in Africa’s transition to Net-Zero by addressing the gap in funding green infrastructure project preparation and development,” stated Emmanuel Moulin, Director General of the French Treasury. It is consistent with France’s vision and solidarity strategy for sustainable investment in Africa to allocate concessional resources to such an effort. For this reason, we have been supporters of AGIA since its inception, and we are happy that the Summit on a New Global Financing Pact has given the project more impetus. Thus, we are happy to announce that we have given €20 million to AGIA. We also hope that this commitment will serve as a catalyst for additional private and concessional funding.
“We need private sector financing at scale to tackle climate change and fill Africa’s huge infrastructure gap in a sustainable and climate-resilient manner,” stated Dr. Akinwumi Adesina, president of the African Development Bank Group. We are dedicated to stepping up these efforts by cooperating and combining our resources through AGIA. The Bank Group intends to make a contribution of up to $40 million following board of directors approval.
BADEA President Sidi Ould Tah declared, “We have committed $40 million to assist AGIA. We are happy to be a part of this important collaboration, which aims to support innovative green infrastructure projects throughout Africa and hasten the sustainable transition of the continent to Net-Zero.
“Africa’s largest fund focused on project development, AGIA is set to become,” stated Africa50 CEO Alain Ebobissé. “This is a critical component to scale up the delivery of bankable green projects and help the continent achieve its climate goals.” Strong African and international organizations are participating in this first financing round, which is a positive indication of investor trust in AGIA. We are honored to be a part of this historic endeavor.
BOAD President Serge Ekué: “We have committed that around 25% of our new financing will be directed at enhancing our member countries’ resilience to climate change as part of our 2021–2025 Djoliba strategic plan. This goal is reflected in our interest in AGIA, which will be consistent with our strategic strategy of mobilizing greater climate resources.
Speaking on behalf of Proparco and the French government, CEO Françoise Lombard stated that the organization “is proud to support AGIA, an initiative aiming to unlock Africa’s potential for green infrastructure by targeting one of its main constraints: the lack of existing bankable projects in this area.” AGIA will be able to mobilize and direct public and private resources toward project preparation and development—the riskier phases of any infrastructure project—thanks to the initiative’s creative hybrid structure. Furthermore, we are getting closer to Net-Zero and closing the infrastructure gap in Africa thanks to AGIA.
“We support AGIA’s mission to catalyze economic development and green infrastructure in Africa,” stated Mark Gallogly, cofounder of the Three Cairns Foundation. To increase the number of clean energy and climate-related initiatives across the continent, more early-stage equity that is risk-tolerant is needed. We applaud Africa50 for spearheading this endeavor.
AGIA was introduced by the African Union Commission, the African Development Bank, Africa50, and other partners during COP27 in Sharm El Sheikh, Egypt, a year ago.