The African Development Bank (AfDB) has approved a $30 million equity investment in the Africa Finance Corporation (AFC) to launch its innovative “green shares.”
This pioneering initiative is set to unlock critical funding for climate action projects across Africa, marking a bold step toward sustainable development on the continent.
The rollout of green shares is designed to channel significant resources into transformative projects, including wind and solar power plants in Djibouti and Egypt, as well as energy storage systems in Cabo Verde. By leveraging this equity investment, AFC plans to raise additional funding from global capital markets to support projects that build climate resilience and drive green growth.
Africa, despite contributing less than 3% of global carbon emissions, is disproportionately affected by the devastating impacts of climate change. With an annual infrastructure financing gap of $170 billion, innovative solutions like green shares offer a lifeline for addressing these challenges while creating economic opportunities.
“The collaboration between the African Development Bank and Africa Finance Corporation exemplifies the transformative power of strategic partnerships,” said Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialization. “Our investment in AFC’s green shares is a catalyst, signaling to regional and global investors that Africa is ready to lead the way in green growth.”
The initiative has been hailed as a game-changer for mobilizing sustainable financing on the continent. Banji Fehintola, AFC Executive Board Member and Head of Financial Services, expressed deep appreciation for the support. “We are honored to welcome the African Development Bank as the first investor in our Green Shares program. Their $30 million commitment demonstrates the urgency of tackling Africa’s climate and infrastructure challenges. Together, we are advancing impactful solutions that will shape a prosperous, sustainable future for the continent,” he said.
The investment as highlighted by allAfrica is expected to deliver far-reaching benefits, including the creation of over 1,600 full-time equivalent jobs by 2031. It will also generate clean energy to power millions of homes, foster regional integration, and expand economic opportunities for marginalized groups, particularly women and rural communities.
AFC, established in 2007, has built a reputation as a trusted partner in delivering high-quality infrastructure projects across Africa. With investments exceeding $13 billion in 43 member countries, the corporation is uniquely positioned to drive the continent’s green transition.
“This partnership with AFC is a milestone in our efforts to direct capital into projects that build climate resilience and foster sustainable growth,” said Ahmed Attout, AfDB’s Director for Financial Sector Development.
The rollout of green shares represents more than a financial transaction—it is a commitment to a greener, more inclusive Africa. This bold partnership between AfDB and AFC underscores the continent’s determination to lead the fight against climate change while transforming its economic landscape.
