African Development Bank invests $40M in Alliance for Green Infrastructure in Africa Fund

The African Development Bank Group (AfDB) has announced a $40 million blended capital investment into the Alliance for Green Infrastructure in Africa – Project Development Fund (AGIA-PD), anchoring the Fund’s first close at $118 million. The initiative is designed to accelerate early-stage green infrastructure development, unlocking a $10 billion pipeline of investment-ready projects across the continent.

The AGIA-PD brings together an influential coalition of development finance institutions, public agencies, philanthropies, and private investors, including KfW (Germany’s development bank), the West African Development Bank (BOAD), the UK’s Foreign, Commonwealth & Development Office (FCDO), the Three Cairns Group, and the Soros Economic Development Fund.

AfDB’s strategic investment

The Bank’s contribution comprises $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from the Sustainable Energy Fund for Africa, which it administers. This structure de-risks early-stage projects, attracting private sector participation in critical green infrastructure sectors such as renewable energy, sustainable transport, and ICT.

“Through this $40 million spanning grants, junior equity, and commercial equity, the African Development Bank is pioneering a comprehensive approach that will unlock Africa’s vast green infrastructure potential,” said Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure and Industrialization.

African Development Bank headquarters, symbolizing leadership in Africa’s green transition.

Part of a wider $500 million initiative

The Alliance for Green Infrastructure in Africa is spearheaded by the AfDB, the African Union Commission, and Africa50. It targets $500 million in total — $100 million in grants for project preparation and $400 million for project development — to attract multi-billion-dollar private investment into low-carbon, climate-resilient infrastructure.

Africa50 CEO Alain Ebobissé noted that the first close is “a powerful testament” to AGIA’s shift from concept to execution since its launch at COP27. “By unlocking early-stage capital, AGIA will accelerate bankable green infrastructure projects, strengthen local capacity, and pave the way for a more sustainable, resilient, and prosperous Africa,” he said.

Global backing for Africa’s green future

Partners expressed strong support for AGIA’s blended finance model. UK Minister Jenny Chapman highlighted the role of British investment in enabling African-led renewable energy and water treatment projects. KfW, representing Germany’s commitment, has pledged €26 million to foster public and private investment in climate-friendly infrastructure. BOAD President Serge Ekue reaffirmed West Africa’s dedication to closing the region’s infrastructure gap.

Mark Gallogly of Three Cairns Group and Georgia Levenson Keohane of the Soros Economic Development Fund both stressed AGIA’s role in removing barriers to scaling clean energy and delivering inclusive, sustainable growth.