AfDB Invests $20 Million in Fund for RE Expansion in Sub-Sahara

African Development Bank (AFDB) has held in a key announcement that the Board of Directors of the AfDB Group has approved an equity investment of $20 million in Evolution Fund III. It is a pan-African clean and sustainable energy private equity fund that is mobilising about $400 million into renewable energy and resource-efficiency assets across Sub-Saharan Africa over a ten-year period.

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

AfDB also said that its support will contribute to an additional 2,162-MW of installed renewable power generation capacity, 1.8 million tons of CO2 emission savings, and a green and sustainable growth across Africa by creating 2,480 full-time jobs.

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Kevin Kariuki, VP, Power, Energy, Climate Change and Green Growth Complex, AfDB, mentioned that the Bank is committed to boosting its portfolio of renewable energy projects and encouraging private investment in renewable and efficient energy solutions.

“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,” said the AfDB VP.

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.

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Christopher Clarke, Co-Managing Partner at Inspired Evolution- a fund manager that has initiated the Evolution Fund, said “AfDB has been a consistent supporter of Inspired Evolution since 2010 and this third capital commitment evidences our trusted partnership that has been established in the delivery of the AfDB climate goals for Africa.”

The African Development Bank and partners in the new fund will continue to provide growth capital and infrastructure equity to support renewable and sustainable energy, and focus on decarbonization, decentralization and digitalization as the key climate mitigation and energy transition strategies.

Inspired Evolution Investment Management is a well-established fund manager with more than 15 years of experience and a track record of deploying more than $310 million 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.