On August 16, 2025, the African Development Bank Group (AfDB) made headlines by announcing a $40 million commitment to the Alliance for Green Infrastructure in Africa Project Development Fund (AGIA-PD), anchoring the Fund’s first close at a robust $118 million. This milestone signals a major leap forward in mobilizing blended capital to unlock a pipeline of investment-ready green infrastructure projects across Africa—a continent where the need for sustainable, climate-resilient infrastructure is more urgent than ever.
The AGIA initiative is the result of a broad coalition. Led jointly by the AfDB, the African Union Commission, and Africa50, the alliance brings together development finance institutions, public agencies, philanthropic organizations, and private investors. Key partners in the first close include Germany’s KfW (development bank), the West African Development Bank (BOAD), the UK’s Foreign, Commonwealth & Development Office (FCDO), the Three Cairns Group, and the Soros Economic Development Fund, according to multiple sources including Business Africa and RealNews Magazine.
The AfDB’s $40 million investment is structured as $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from the Sustainable Energy Fund for Africa, which the Bank administers. This blend of grants and equity is designed to de-risk early-stage projects—often the most challenging phase for green infrastructure—and catalyze private sector investment. As Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure and Industrialisation, put it, “Through this $40 million 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. 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 AGIA-PD Fund is a centerpiece of the broader AGIA initiative, which was first unveiled at COP27. The initiative’s ambition is staggering: to raise $500 million—divided into $100 million in grants for project preparation and $400 million for project development—unlocking a pipeline of $10 billion in investment opportunities in strategic sectors such as energy, sustainable transport, water, and ICT. The focus is on creating a diverse and scalable pipeline of projects, supporting both established and emerging developers, and ensuring that Africa’s infrastructure future is both inclusive and sustainable.
Alain Ebobissé, CEO of Africa50 and manager of the fund, emphasized the significance of this first close: “Since the unveiling of the initiative at COP27, the Alliance for Green Infrastructure in Africa has moved from ambition to execution, and this first close of the AGIA Project Development Fund is a powerful testament to that progress.” He added, “By unlocking early-stage capital, AGIA will accelerate the development of bankable projects, strengthen local capacity, and pave the way for a more sustainable and prosperous Africa.”
The AGIA initiative stands out for its inclusive approach, aiming to support both established developers and new local players. This is crucial for building long-term capacity across the continent. According to Africa50, the fund will focus on the upstream development of transformative projects in renewable energy, sustainable transport, water, and ICT—sectors that are key to Africa’s economic growth and climate resilience.
International partners have been quick to highlight the transformative potential of the fund. UK Minister of State for Development Jenny Chapman remarked, “We are partnering with countries to unlock private investment in the places hardest hit by climate change. This will support solar farms, water treatment plants, and other projects that help build stronger, climate-resilient economies.” Germany, through its development bank KfW, has committed €26 million to the initiative. Christine de Barros Said, Head of Cooperation at the German Embassy in Maputo, explained, “AGIA identifies and develops projects until they reach creditworthiness, then sells them to investors. This generates vital investments in renewable energy, transport, water, and digitalization, sectors Africa urgently needs to foster growth and create jobs.”
The West African Development Bank (BOAD) is also playing a pivotal role. BOAD President Serge Ekue stressed, “BOAD’s commitment to supporting Africa50 in implementing AGIA underscores our dedication to closing Africa’s infrastructure gap and fostering private sector investment in innovative projects.” The Soros Economic Development Fund, another key supporter, described AGIA as a vital Africa-led initiative. CEO Georgia Keohane said, “The Soros Economic Development Fund is proud to support AGIA, a critically important partnership catalysing transformative projects that enhance climate resilience and drive inclusive, sustainable development.”
One of the biggest hurdles to scaling clean energy and climate-resilient infrastructure in Africa has long been the lack of bankable projects. Mark Gallogly, Co-founder of the Three Cairns Group, highlighted, “The lack of bankable projects remains a persistent barrier to scaling clean energy and climate-resilient infrastructure. AGIA’s first close marks a significant milestone in tackling the challenge.” By providing early-stage capital and de-risking mechanisms, AGIA aims to bridge this gap and pave the way for large-scale private investment.
The AGIA initiative also seeks to address the broader goals of a just and inclusive energy transition. As noted by Georgia Keohane of the Soros Economic Development Fund, AGIA is “a crucial step to accelerate a just and inclusive energy transition,” ensuring that the benefits of green infrastructure reach vulnerable communities and foster sustainable, equitable development across Africa.
The momentum generated by the AGIA initiative is already resonating across the continent. The first close of the AGIA-PD Fund, managed by Africa50, demonstrates investor confidence and the readiness of Africa’s partners to move from ambition to execution. The fund’s inclusive model—supporting both established and new developers—reflects a commitment to building local capacity and ensuring that Africa’s infrastructure boom benefits a broad swath of society.
Looking ahead, the AGIA initiative aims to continue mobilizing capital and expertise to unlock Africa’s vast green infrastructure potential. With strong backing from African and international partners, and a clear focus on de-risking early-stage projects, the alliance is poised to make a lasting impact on Africa’s economic and environmental future. In the words of Solomon Quaynor, “Our blended-finance model is designed to mobilise billions in private-sector investment for Africa’s low-carbon and climate-resilient infrastructure.”
As the Alliance for Green Infrastructure in Africa transitions from vision to action, the eyes of the world will be watching to see how this ambitious partnership shapes the continent’s infrastructure landscape—and, just maybe, sets a new global standard for sustainable and inclusive development.
