AfDB Anchors $118M First Close of AGIA Fund to Boost Africa’s Green Infrastructure

The African Development Bank Group (AfDB) has announced a landmark $40 million investment into the Alliance for Green Infrastructure in Africa – Project Development Fund (AGIA-PD), marking the anchor contribution to the Fund’s first close of $118 million. This milestone represents a significant step toward mobilizing blended capital for early-stage project development, aiming to unlock a pipeline of investment-ready green infrastructure projects across the African continent.

The AGIA-PD brings together a diverse coalition of development finance institutions, public agencies, philanthropic organizations, and private investors, including KfW (German 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 Comprehensive Blended Finance Approach

The AfDB’s $40 million package comprises:

• $20 million in grants

• $10 million in commercial equity

• $10 million in junior equity from the Bank-administered Sustainable Energy Fund for Africa

This strategic investment underscores the Bank’s leadership in de-risking early-stage infrastructure projects and catalyzing private sector participation.

“This investment represents more than capital. It is a bold declaration that the Bank stands ready to share early-stage risk alongside our partners,” said Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialization. “Our blended-finance model is designed to mobilize billions in private-sector investment for Africa’s low-carbon and climate-resilient infrastructure.”

About the Alliance for Green Infrastructure in Africa

The AGIA is a joint initiative led by the African Development Bank, the African Union Commission, and Africa50. Launched at COP27, AGIA aims to raise $500 million—including $100 million in grants for project preparation and $400 million for project development—ultimately unlocking a $10 billion investment pipeline. Target sectors include renewable energy, sustainable transport, water infrastructure, and ICT.

Africa50 CEO Alain Ebobissé emphasized the transition from concept to execution:

“Since the unveiling of the initiative at COP27, AGIA has moved from ambition to execution. By unlocking early-stage capital, AGIA will accelerate the development of bankable green infrastructure projects, strengthen local capacity, and pave the way for a more sustainable, resilient, and prosperous Africa.”

Global Support for African-Led Climate Action

International partners voiced strong backing for AGIA’s mission:

• Jenny Chapman, UK Minister of State for Development, highlighted the UK’s role in supporting African-led projects such as solar farms and water treatment plants, which will build economic resilience against climate change.

• Christine de Barros Said, Head of Cooperation at the German Embassy in Maputo, confirmed Germany’s €26 million contribution via KfW, noting AGIA’s unique role in developing projects to creditworthiness and transferring them to investors.

• Serge Ekue, President of BOAD, reaffirmed the Bank’s commitment to closing Africa’s infrastructure gap and driving sustainable growth in the West African Economic and Monetary Union.

• Mark Gallogly, co-founder of the Three Cairns Group, described AGIA’s first close as a “critical milestone” in overcoming barriers to scaling clean energy and climate-resilient infrastructure.

• Georgia Levenson Keohane, CEO of the Soros Economic Development Fund, underscored AGIA’s importance for advancing a just energy transition and inclusive, sustainable development.

Paving the Way for a $10B Green Investment Pipeline

With this first close, AGIA-PD is now positioned to co-develop projects with both emerging and established developers, focusing on rapid, scalable, and sustainable infrastructure solutions. By strategically blending concessional capital, commercial investment, and technical expertise, the Fund aims to attract billions in private capital, advancing Africa’s climate resilience and green growth agenda.

As Ebobissé concluded, AGIA is not just a financing platform—it is “a catalyst for the future of Africa’s infrastructure”, one designed to tackle the continent’s infrastructure deficit while aligning with global climate goals.