AfDB invests $20m in Africa’s renewable energy

The African Development Bank Group’s Board of Directors today approved a $20 million equity investment in Evolution Fund III, a pan-African clean and sustainable energy private equity fund that will invest $400 million over 10 years in renewable energy and resource-efficient assets in sub-Saharan Africa.

A fund manager with more than 15 years of experience, Inspired Evolution Investment Management has a track record of putting more than $310 million into renewable energy projects in African nations. The fund manager has produced 21 renewable energy projects totaling 2 GW in generation capacity through its previous funds.

With North Africa, many SSA nations, and decentralized energy business models as the focal points of climate mitigation and energy transition, EVIII wants to expand its geographic and technological scope.

Building on the success of the Evolution Funds I and II, which produced about 1,309 jobs, 22% of which were for women, the bank’s support is anticipated to contribute to an additional 2,162MW of installed renewable power generation capacity, 1.8 million tons of CO2 emission savings, and a green and sustainable growth throughout Africa by creating 2,480 full-time jobs.

READ MORE: AfDB grants over $1.1 billion to 20,500 Nigerian MSMEs

“The Bank is committed to growing its portfolio of renewable energy projects and supporting private investment in renewable and efficient energy solutions,” said Kevin Kariuki, vice president of the African Development Bank’s Power, Energy, Climate Change, and Green Growth Complex.

He added, “The Evolution Fund III is well placed to invest much-needed capital in long-term, low-carbon, and climate-resilient development pathways towards achieving a just, net-zero future for African countries.”

The bank’s investment in Evolution Fund III aligns with its ‘High Five objectives,’ particularly, ‘Light Up and Power Africa’ under its New Deal on Energy for Africa, he said.

The Director, of Energy Financial Solutions, Policy & Regulations, Wale Shonibare, said, “The bank’s support for a private equity fund focused on promoting renewable energy in Africa, will assist regional member countries to achieve their Nationally determined contributions and Paris Agreement obligations.”

Source: punchng.com