By Gift Briton
African and international institutions, philanthropies, and governments of Germany, France, and Japan have pledged financial support of over $175 million to the Alliance for Green Infrastructure in Africa (AGIA).
The pledge was made during the ongoing climate change conference in Dubai, with the funds geared to support the development of climate-aligned infrastructure projects in Africa under the AGIA initiative.
Launched during COP 27 in Egypt, AGIA is a partnership of the African Union Commission, the African Development Bank, Africa50, and other partners to unlock up to $10 billion in private capital for green infrastructure projects and to galvanize global action to accelerate Africa’s just and equitable transition to net zero.
Among the signatories of the memorandum of intent were representatives of the African Development Bank, Africa50, France, Germany, Japan, the Arab Bank for Economic Development in Africa (BADEA), Banque Ouest-Africaine de Développement (BOAD), Proparco and the Three Cairns Group.
Dr. Akinwumi Adesina, African Development Bank Group President, in his remarks during the signing ceremony called for increased private financing to close the continent’s infrastructure gap in a sustainable and climate-resilient manner.
“By working together and pooling our resources together through AGIA, we are committed to accelerating these efforts. The Bank Group plans to contribute up to $40 million, after approval from its Board of Directors,” he noted.
Germany’s Minister for Economic Cooperation and Development, Svenja Schulze, said: “Today marks an important step towards our shared goal of a just and equitable green transition in Africa. Supporting the commitment towards green infrastructure, we are planning to contribute up to €26 million to AGIA starting in 2024.”
Japan, through the country’s Deputy Vice-Minister of Finance, Tomoyoshi Yahagi, pledged to provide US$10 million to AGIA to support Africa in undergoing a just and equitable transition to net-zero and achieving the 1.5 °C pathway. Yahagi also encouraged other donors to contribute to the initiative.
“Directing concessional resources to such an initiative is in line with France’s vision and solidarity policy for sustainable investment in Africa. This is why we have supported AGIA since inception and we are glad that the Summit on a New Global Financing Pact further raised momentum for the initiative. We are therefore delighted to announce a contribution of €20 million to AGIA and we hope that our contribution will catalyze more private and concessional resources,” Emmanuel Moulin, Director General of the French Treasury, said.
Sidi Ould Tah, President of BADEA pledged $40 million to support AGIA, Serge Ekué, President of BOAD also noted that BOAD is committed to channeling 25% of their new financing to strengthening the resilience of our member countries to climate change including supporting the AGIA initiative, with Mark Gallogly, cofounder of the Three Cairns Group, reaffirming the Group’s commitment to supporting AGIA’s mission to catalyze economic development and green infrastructure in Africa.
Françoise Lombard, CEO of Proparco, said: “The innovative blended structure of the initiative will allow AGIA to mobilize and channel public and private resources towards project preparation and development, the riskier stages of any infrastructure project. In addition, With AGIA, we are one step closer to bridging the infrastructure gap in Africa and one step further towards net zero.”
“AGIA is set to become Africa’s largest fund focused on project development, which is a critical component to scale up the delivery of bankable green projects and help the continent achieve its climate goals. This initial fundraising round which includes strong African and international organizations is a great sign of investor confidence in AGIA. We are pleased to be part of this landmark initiative,” Alain Ebobissé, Africa50 CEO noted.
The Union of the Comoros President and Chairperson of the African Union Azali Assoumani, Madagascar’s President Andry Rajoelina, and AUC Chairperson, Moussa Faki Mahamat witnessed the signing ceremony.
