Alliance for Green Infrastructure in Africa Project Development Fund (AGIA-PD), a fund managed by Africa50, has announced the first close at $118m, marking a major milestone in accelerating the delivery of green infrastructure across the continent. 

Africa50 CEO, Alain Ebobissé said that 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". 

"We are deeply grateful to our founding partners and investors for their trust and commitment. By unlocking early-stage project development capital, AGIA will help accelerate the development of bankable green infrastructure projects, strengthen local capacity, and pave the way for a more sustainable, resilient, and prosperous Africa. Africa50 is proud to serve as fund manager and drive this vital initiative forward," he said.

The fund aims to bring together public, commercial, and philanthropic capital to unlock early-stage investment for transformative, climate-resilient projects in Africa. 

AGIA’s first close has attracted leading investors including the African Development Bank (AfDB), AGIA’s first close has attracted leading investors including the African Development Bank (AfDB), the German Development Cooperation through KfW, the West African Development Bank (BOAD), the UK's Foreign, Commonwealth & Development Office (FCDO), the Soros Economic Development Fund, and the African Climate Foundation (ACF).

The fund will be targeting investments that seek to accelerate the continent's transition to net-zero by catalyzing green projects in strategic areas including energy, sustainable transport, and ICT. 

The AGIA-PD fund is expected to contribute to increasing the pipeline of bankable projects, catalyze private sector investment, and drive sustainable growth. 

“Through this $40m 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, Vice President for Private Sector, Infrastructure and Industrialization, the African Development Bank (AfDB). 

“This investment represents more than capital. It is a bold declaration that the Bank stands ready to share early-stage risk alongside our partner. The resources will be deployed for co-developments with both emerging and established developers, ensuring a diverse and scalable pipeline. Our blended-finance model is designed to mobilize billions in private-sector investment for Africa’s low-carbon and climate-resilient infrastructure.”

The focus on project development will have a highly catalytic impact on the pipeline of bankable projects in Africa, enabling increased private sector mobilization into infrastructure in Africa.

To deliver on its mandate, the fund will partner with established developers but will also critically support and provide resources to local and emerging developers, empowering African leadership in the development of sustainable infrastructure.

With a diverse set of prominent investors participating in the first close, the fund demonstrates the viability of investing in the development of green infrastructure investment in Africa. 

Serge Ekue, President and Chairman of the West African Development Bank (BOAD), said: “BOAD's commitment to supporting Africa50 in implementing AGIA reaffirms our dedication to closing Africa's infrastructure gap and fostering private sector investment in innovative projects. This contribution is poised to drive sustainable development across the West African Economic and Monetary Union member states and the continent at large."

The fund forms part of the landmark Alliance for Green Infrastructure in Africa (AGIA) initiative which Africa50 launched in partnership with the African Union Commission and the African Development Bank at COP27 in Sharm El Sheikh, Egypt.

AGIA aims to raise up to $500m in blended capital, with up to $100m dedicated to project preparation through existing facilities managed by the AfDB, and up to $400m for investment in project development through the AGIA-PD fund. 

The United Kingdom’s Minister of State for Development, Jenny Chapman said, "We are partnering with countries to unlock private investment in the places hardest hit by climate change. This is good news for local communities, helping create growth, and for the UK. Today's UK investment will support African-led projects like solar farms and water treatment plants, helping build stronger economies which can deal better with the effects of climate change.”

“The Soros Economic Development Fund (SEDF) is proud to support the Alliance for Green Infrastructure in Africa, a critically important Africa-led partnership to catalyze transformative green infrastructure projects that enhance climate resilience, accelerate a just energy transition, and drive inclusive, sustainable development across the continent.” Georgia Levenson Keohane, CEO of the Soros Economic Development Fund.

AGIA-PD is also supported by the Three Cairns Group through its partner, The African Climate Foundation. “The lack of bankable projects remains a persistent barrier to scaling clean energy and climate-resilient infrastructure across Africa,” said Mark Gallogly, co-founder of Three Cairns Group. “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 added. 

The multi-stakeholder platform seeks to leverage the track record, expertise and convening power of its partners to prepare, develop and finance a transformative pipeline of green infrastructure projects in Africa. Its long-term objective is to generate up to $10bn in investment opportunities for the private sector.