AfDB make $30m equity investment in Africa Finance Corporation

The African Development Bank (AfDB) Board of Directors has approved a $30 million equity investment in the Africa Finance Corporation (AFC) to support the rollout of innovative “green shares” aimed at mobilising resources for climate action projects across Africa.

This investment will enable AFC to establish a sustainable financing ecosystem that will bridge the infrastructure and climate financing gaps in Africa. The initiative is expected to unlock significant funding for high-impact projects, including wind and solar power plants in Djibouti and Egypt and energy storage systems in Cabo Verde.

AFC plans to leverage the green equity to mobilise debt funding from capital markets for on-lending to sub-projects. This partnership is projected to create over 1,600 full-time equivalent jobs by 2031 and generate clean, reliable energy to power millions of African households.

The investment is part of AfDB’s efforts to channel domestic, regional, and global capital into projects that build climate resilience and foster sustainable growth across the continent.