AfDB Boosts Africa’s Renewable Energy With $20m

Board of Directors of African Development Bank Group (AfDB), on Thursday 17th of November, 2022, approved an equity investment of $20m in Evolution Fund III, a pan-African clean and sustainable energy private equity fund set aside in mobilising about $400m into renewable energy and resource-efficiency assets across sub-Saharan Africa over a 10-year period.

Inspired Evolution Investment Management, the fund manager has more than 15 years experience, with a track record of deploying more than $310m in renewable energy projects in African countries.

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

The project, tagged “EVIII” aims to broaden geographic and technology scope to incorporate North Africa, and several SSA countries, as well as decentralise energy business models as the key climate mitigation and energy transition.

AfDB’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, consolidating on the track records of Evolution Funds I and II, which had generated around 1,309 jobs, boasting 22 per cent women engagement.

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

Kariuki added that “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.”

He revealed 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 the African continent.

The Director, Energy Financial Solutions, Policy & Regulations of AfDB, Wale Shonibare, admonished “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.”

The continental bank strives to support renewable energy projects, as the African Development Bank acted as the Mandated Lead Arranger (MLA) and Coordinating Bank for the ZAR 11.6 bn total investment, with a commitment of ZAR 2.306 billion to the transaction in South Africa’s largest solar power project which began implementation in February 2022.