The board of Directors at African Development Bank (AfDB) approved a 32.5 million equity investment into Climate Investor One’s Construction Equity Fund (CEF). The CEF is an initiative driven to use a ‘unique blended approach to deliver renewable energy projects to the market’.
The investment will provide capital and technical assistance for energy projects with potential and will also see them go into the market. The investment will be managed by Climate Fund Managers (CFM) in partnership will Netherlands Development Finance Company (FMO) and Sanlam.
The fund will impact Africa socially and environmentally by creating jobs, promoting clean energy and developing markets. This sentiment is also shared by Amadou Hott, AfDB’s Vice President in Power, Energy, Climate and Green Growth.
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“Significant investments are required to close the infrastructure gap and meet energy access goals. The Bank’s investment in the Fund will complement its operations in the energy sector, and unlock at least an additional $40 million dollars of investments into Africa. With nearly 600 million Africans without access to energy, there is a huge market for the Fund to invest and generate a return for its investors.”
This is great news for the continent at large.