#COP28 - Partners pledge $175m to Alliance for Green Infrastructure in Africa
This groundbreaking commitment signifies a crucial step in rapidly expanding financing for transformative climate-aligned infrastructure projects across the continent.
ABU DHABI, United Arab Emirates - During COP28, African and global institutions, along with the governments of Germany, France, and Japan, as well as philanthropic organizations, pledged over $175 million to support the Alliance for Green Infrastructure in Africa (AGIA).
These new pledges will propel AGIA towards its initial goal of securing $500 million for early-stage project preparation and development blended capital. The Alliance, a collaborative effort involving the African Union Commission, the African Development Bank, Africa50, and other partners, aims to unlock up to $10 billion in private capital for green infrastructure projects. Moreover, it seeks to mobilize global action to accelerate Africa’s just and equitable transition to Net-Zero.
Signatories of the memorandum of intent included 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. The signing ceremony was witnessed by the Union of the Comoros President and Chairperson of the African Union, Azali Assoumani, Madagascar’s President Andry Rajoelina, and African Union Commission Chairperson Moussa Faki Mahamat.
Expressing Germany's commitment, Mrs. Svenja Schulze, Minister for Economic Cooperation and Development, stated, “Germany is delighted to join the launch of the Alliance for Green Infrastructure in Africa. We commend the African Development Bank for this pivotal Africa-led initiative and recognize AGIA’s dedication to the 1.5°C target and its role in accelerating Net-Zero emissions in Africa. In support of green infrastructure, we plan to contribute up to €26 million to AGIA, commencing in 2024.”
Japan’s Deputy Vice-Minister of Finance, Tomoyoshi Yahagi, announced, “As part of Prime Minister Fumio Kishida's pledge, Japan will provide US$10 million to AGIA, aiding Africa in its just and equitable transition to Net-Zero and adherence to the 1.5°C pathway. We encourage other donors to contribute to this critical initiative.”
Emmanuel Moulin, Director General of the French Treasury, emphasized, “Addressing the gap in funding green infrastructure project preparation and development is pivotal to Africa’s Net-Zero transition. Directing concessional resources to such initiatives aligns with France’s vision for sustainable investment in Africa. In line with our continuous support for AGIA since its inception, we are pleased to announce a contribution of €20 million, aiming to catalyze additional private and concessional resources.”
Dr. Akinwumi Adesina, President of the African Development Bank Group, highlighted, “To tackle climate change and address Africa's infrastructure gap sustainably and resiliently, we need substantial private sector financing. Through collaborative efforts and pooled resources via AGIA, we are dedicated to expediting these endeavors.”
Sidi Ould Tah, President of BADEA, stated, “Our commitment of $40 million to support AGIA reflects our enthusiasm for this vital partnership. It aims to facilitate transformational green infrastructure projects in Africa, expediting the continent’s sustainable transition to Net-Zero.”
Africa50 CEO, Alain Ebobissé, underscored, “AGIA is poised to become Africa’s largest fund focused on project development, a critical aspect to scale up bankable green projects and help achieve the continent's climate goals. The success of this initial fundraising round, inclusive of robust African and international organizations, demonstrates investor confidence in AGIA.”
Serge Ekué, President of BOAD, outlined, “Aligned with our 2021–2025 Djoliba strategic plan, our commitment to allocate about 25% of our new financing toward enhancing our member countries’ resilience to climate change reflects our interest in AGIA. This aligns with our strategic approach of mobilizing increased climate resources in our region.”
Françoise Lombard, CEO of Proparco, emphasized, “Together with the French government, we are proud to support AGIA, aiming to unlock Africa’s potential for green infrastructure. AGIA's innovative blended structure will mobilize public and private resources towards project preparation and development, crucial stages in any infrastructure project. With AGIA, we move closer to bridging Africa's infrastructure gap and achieving Net-Zero.”
Mark Gallogly, cofounder of the Three Cairns Foundation, expressed, “We endorse AGIA’s mission to stimulate economic development and green infrastructure in Africa. Increasing early-stage equity, which is more risk-tolerant, is pivotal to expanding clean energy and climate-related projects across the continent. We applaud Africa50 for spearheading this initiative.”
AGIA was launched a year ago during COP27 in Sharm El Sheikh, Egypt, by the African Union Commission, the African Development Bank, Africa50, and other partners.
*Sourced from the African Development Bank website