A coalition of African and global institutions, along with the governments of Germany, France, and Japan, have pledged USD 175 million to the Alliance for Green Infrastructure in Africa (AGIA) during the ongoing COP28 summit.
This initial commitment aims to swiftly boost financing for climate-aligned infrastructure projects across the African continent.
“By working together and pooling our resources through AGIA, we are committed to accelerating these efforts. The Bank Group plans to contribute up to USD 40 million, after approval from its Board of Directors,” stated Dr Akinwumi Adesina, African Development Bank Group President.
The Alliance, formed through collaboration between the African Union Commission, the African Development Bank, Africa50, and other partners, seeks to unlock up to USD 10 billion in private capital for green infrastructure projects to accelerate Africa’s just and equitable transition to net-zero.
Signatories to the memorandum of intent include representatives from key entities such as 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.
Expressing Germany’s commitment, Minister for Economic Cooperation and Development, Mrs Svenja Schulze, stated, “Today 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.”
While Japan’s Deputy Vice-Minister of Finance, Tomoyoshi Yahagi, emphasized Japan’s contribution, saying, “Japan will provide USD 10 million to AGIA to support Africa in undergoing a just and equitable transition to Net-Zero and achieving the 1.5°C pathway. We encourage other donors to contribute to this important initiative.”
This new wave of pledges will propel AGIA toward achieving its initial target of USD 500 million, dedicated to early-stage project preparation and development blended capital.
AGIA, launched a year ago at COP27 in Sharm El Sheikh, Egypt, with the alliance slowly gaining support in its attempt to become Africa’s largest fund focused on project development.
