Over $175-Million Pledged for Africa’s Climate-Aligned Infrastructure at COP28

Global Collaboration Boosts Africa’s Climate Resilience with $175M in Infrastructure Pledges

by Adenike Adeodun

In a landmark moment at COP28, a coalition of African and global bodies, along with the governments of Germany, France, Japan, and various philanthropic entities, have committed over $175 million to the Alliance for Green Infrastructure in Africa (AGIA). This significant contribution marks a crucial step in scaling up investment for climate-aligned infrastructure projects throughout Africa.

AGIA, a partnership comprising the African Union Commission, the African Development Bank, and Africa50, among others, is set to channel these funds into early-stage project preparation and development. This move propels AGIA closer to its initial target of $500 million in blended capital, underlining the alliance’s commitment to unlocking up to $10 billion in private capital for green infrastructure projects. This initiative is a key driver in propelling Africa towards a just and equitable transition to net-zero emissions.

Notable attendees at the signing of the memorandum of intent included representatives from the African Development Bank, Africa50, and officials from France, Germany, and Japan, alongside others like the Arab Bank for Economic Development in Africa (BADEA), Banque Ouest-Africaine de Développement (BOAD), Proparco, and the Three Cairns Foundation.

Germany’s Minister for Economic Cooperation and Development, Svenja Schulze, highlighted the pledge as a pivotal move towards a green and equitable transition in Africa, with Germany committing up to €26 million from 2024. Japan, through Deputy Vice Minister of Finance Tomoyoshi Yahagi, pledged $10 million, emphasizing the need for global support in Africa’s quest for a sustainable future.

French Treasury Director General Emmanuel Moulin underscored France’s commitment by announcing a €20 million contribution, aligning with their vision of sustainable investment in Africa. This follows France’s consistent support for AGIA since its inception.

According to a report by ESI Africa, Dr Akinwumi Adesina, President of the African Development Bank Group, stressed the need for private sector financing to bridge Africa’s infrastructure gap sustainably. The Bank Group is planning a substantial contribution of up to $40 million, pending board approval.

BADEA’s President, Sidi Ould Tah, announced a $40 million pledge, reinforcing their commitment to transformative green infrastructure in Africa. Similarly, BOAD President Serge Ekué, aligning with their strategic plan, highlighted their commitment to allocating a significant portion of new financing to climate resilience initiatives, reflecting their interest in AGIA.

Proparco CEO Françoise Lombard pointed out AGIA’s innovative structure in mobilizing resources for infrastructure development, emphasizing its role in bridging Africa’s infrastructure gap and advancing towards net zero. Mark Gallogly, cofounder of the Three Cairns Foundation, also expressed their support for AGIA’s mission of fostering economic development and green infrastructure in Africa.

Launched at COP27 in Egypt, AGIA’s journey represents a collective effort towards sustainable development and climate resilience in Africa, showcasing a united front in the face of climate challenges.

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