AfDB Approves $20m Investment Fund for Africa’s Renewable Energy

The African Development Bank, Board of Directors, approved an equity investment of $20m in Evolution Fund III, a pan-African clean and sustainable energy private equity fund that will invest about $400 million in renewable energy and resource-efficient assets across Sub-Saharan Africa over the next 10 years.

Inspired Evolution Investment Management is a fund manager with more than 15 years of experience and a track record of deploying more than $310m in renewable energy projects in African counties.

The fund manager, through its predecessor funds, has delivered 21 renewable energy projects with a total generation capacity of 2 GW.

EVIII aims to broaden geographic and technology scope to incorporate North Africa as well as several SSA countries and decentralised energy business models as the key climate mitigation and energy transition.

The bank’s support is expected to contribute to an additional 2,162MW of installed renewable power generation capacity, 1.8m tons of CO2 emission savings, and a green and sustainable growth across Africa by creating 2,480 full-time jobs, building on the track record of Evolution Funds I and II, which generated about 1,309 jobs out of which 22 per cent were women.

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The Vice President, African Development Bank’s Power, Energy, Climate Change and Green Growth Complex, Kevin Kariuki, said, “The Bank is committed to boosting its portfolio of renewable energy projects and encouraging private investment in renewable and efficient energy solutions.

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.

Wale Shonibare, the Director, 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.”