The Alliance for Green Infrastructure in Africa’s Project Development Fund (AGIA-PD) has successfully achieved a first close of $118 million (€101 million), backed by a range of investors, including the African Development Bank (AfDB), UK and German government agencies, and other key players. This funding milestone was announced by Africa50, the fund manager.

The AGIA-PD fund is targeting up to $400 million in early-stage project development capital, aimed at financing climate-resilient infrastructure projects through a mix of public, commercial, and philanthropic capital. Focus areas for the fund’s investment include sectors such as energy, sustainable transport, and technology industries—critical areas for advancing climate resilience in Africa.

The first close includes substantial commitments from high-profile investors such as the AfDB, German Development Cooperation via KfW, the UK’s Foreign, Commonwealth and Development Office, the West African Development Bank, the Soros Economic Development Fund, and the African Climate Foundation.

This funding achievement was unveiled during Africa50’s general shareholders meeting held in Maputo, Mozambique, with key representatives from the investment group present. The diverse set of investors underscores the growing recognition that green infrastructure development in Africa is becoming a more viable investment opportunity.

The Project Development Fund is a component of the broader AGIA initiative, which was launched at the COP27 climate summit in Egypt in 2022. The initiative’s objective is to generate up to $10 billion in investment opportunities for the private sector, primarily focused on projects that enhance Africa’s climate resilience.

“Since the unveiling of the initiative at COP27, AGIA has moved from ambition to execution, and this first close of the AGIA Project Development Fund is a powerful testament to that progress,” remarked Alain Ebobissé, CEO of Africa50.

Solomon Quaynor, Vice President for private sector, infrastructure, and industrialization at the AfDB, emphasized that the institution’s $40 million commitment would encompass grants, junior equity, and commercial equity. He stated that the funds would be deployed for co-developments with both emerging and established developers, ensuring a diverse and scalable pipeline of projects.

Mark Gallogly, co-founder of Three Cairns Group, which supports the African Climate Foundation, noted that the lack of bankable projects had been a long-standing challenge in scaling clean energy and climate-resilient infrastructure across Africa. “AGIA’s first close marks a significant milestone in tackling this challenge. We are proud to support this effort and to see catalytic capital flow into early-stage project development—a critical enabler for unlocking economic vitality on the continent,” he said.

Africa50, established as a platform to mobilize private investment into infrastructure projects in Africa, counts 33 African countries among its shareholders, along with the African Development Bank, the Central Bank of West African States, Bank Al-Maghrib, and the Public Investment Corporation of South Africa.

In addition to the AGIA-PD fund, Africa50 announced a first close of another fund, the Infrastructure Acceleration Fund, at $225.5 million in January 2024. This infrastructure-focused private equity fund, primarily supported by African institutional investors, seeks opportunities in power, energy, transportation, logistics, water, sanitation, and digital and social infrastructure.

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