Green Infrastructure in Africa Alliance to be Set Up Through Global Partnerships
The Alliance will focus on bankable, greener infrastructure projects in African countries.
The African Development Bank (AfDB) and infrastructure fund Africa50, along with the African Union Development Agency and African Union Commission will collaborate with global partners to create an Alliance for Green Infrastructure in Africa.
Proposed at the 6th European Union-African Union Summit held in Brussels, Belgium by AfDB President Dr Akinwuni Adesina, the Alliance's two main strategic objectives are: (i) developing and funding a robust pipeline of bankable green infrastructure projects; and (ii) catalysing the financing of green infrastructure projects quickly and at scale.
The Alliance for Green Infrastructure in Africa’s main goal will be to use the private sector to develop transformative infrastructure that will narrow the infrastructure gap in Africa in a climate-resilient manner. It aims to accomplish this by strengthening Africa’s energy systems and reducing sovereign debt accumulation, especially during limited fiscal capacity across Africa. Alliance members will jointly ensure Africa’s transition to net-zero in a healthy and effective manner.
Climate change is a major threat to human health, food and water security and socio-economic development in Africa. Although Africa contributes minimally to greenhouse gases, it still pays the price of the harmful effects.
There is a shortage of infrastructure development projects but what is missing is the bankability of a project. The aim will be to form a robust pipeline of de-risked projects with stable long-term cash flows.
The Alliance aims to raise US$500 million for early-stage project development. This will start at the pre-feasibility stage and proceed through to commercial and financial close.
The project development will be a combination of co-investments, co-financing, risk mitigation and blended finance from alliance members, and other DFI’s. Others are commercial financial institutions and foundations, public and private global and African institutional investors, project sponsors, multilateral development banks’ sovereign operations and Group of 20 bilateral donors.
The Alliance for #GreenInfrastructure partners will collaborate to support Africa’s transition to Net Zero emissions with investments in greener, climate-resilient and sustainable infrastructure. #EUAUSummit ➡️ https://t.co/QAlOpy87JJ [2/2] pic.twitter.com/5IlmxAdJlq— African Development Bank Group (@AfDB_Group) February 18, 2022
There has been growing investment interest from many international investment institutions such as the European Investment Bank, the European Bank for Reconstruction and Development and the Rockefeller Foundation. These resources will also foster and support innovative ideas to quicken the transition to net-zero which, if it turns into a success will be scaled up and replicated across other countries as well.
To achieve the scalability of the project, the Alliance will execute the programme with three distinct categories of infrastructure project developers – a scaled-up Africa50; Africa50 in co-development with local African developers and select experienced third-party private infrastructure developers.
Top Photo: The Alliance for Green Infrastructure partners will invest in greener, climate-resilient and sustainable infrastructure (@AfDB_Group Twitter handle | African Development Bank Group)