Africa’s Climate-Aligned Infrastructure Receives $175m Pledge

7 December 2023

Source: kenyanwallstreet

Climate-aligned infrastructure across Africa received a boost following over $175million pledge by various bodies at the COP28 Summit in Dubai.

According to the African Development Bank Group President Dr Akinwumi Adesina, the continent needs private sector financing at scale to tackle climate change and fill Africa’s huge infrastructure gap in a sustainable and climate-resilient manner.

“By working together and pooling our resources together through AGIA, we are committed to accelerating these efforts. The Bank Group plans to contribute up to $40 million, after approval from its Board of Directors.”

• African and global institutions together with governments of Germany, France and Japan and philanthropies pledged over $175 million to the Alliance for Green Infrastructure in Africa (AGIA), to rapidly scale up financing for transformative climate-aligned infrastructure projects across the continent.
• The new pledges will also advance AGIA towards its first close of $500 million of early-stage project preparation and development blended capital.
• The Alliance is a partnership of the African Union Commission, the African Development Bank, Africa50 and other partners. It works to unlock up to $10 billion private capital for green infrastructure projects and to galvanise global action to accelerate Africa’s just and equitable transition to Net-Zero.

Among the signatories of the memorandum of intent were representatives of 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 Group.

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 witnessed the signing ceremony.

“Germany is very pleased to join the launch of the Alliance for Green Infrastructure in Africa. We congratulate the African Development Bank on this important Africa-led initiative and want to highlight AGIA’s commitment to the 1.5 °C target and its dedication to accelerate Net-Zero emissions in Africa,” said Germany’s Minister for Economic Cooperation and Development, Svenja Schulze

“This marks an important step towards our shared goal of a just and equitable green transition in Africa. Supporting the commitment towards green infrastructure, we are planning to contribute up to €26 million to AGIA starting in 2024,” she added.