In a major milestone for Africa’s infrastructure development, the Alliance for Green Infrastructure in Africa’s Project Development Fund (AGIA-PD), managed by pan-African investment platform Africa50, has successfully achieved its first close with $118 million.
The announcement was made at the Africa50 General Shareholders Meeting in Maputo, Mozambique, and marks a significant leap forward in mobilizing resources for sustainable, climate-resilient infrastructure across the continent.
AGIA-PD aims to raise up to $400 million in blended early-stage project development capital to unlock a pipeline of bankable, investment-ready infrastructure projects.
The fund is a critical component of the Alliance for Green Infrastructure in Africa (AGIA) initiative, jointly launched at COP27 by Africa50, the African Union Commission, and the African Development Bank (AfDB).
The fund will channel financing into strategic sectors that directly contribute to Africa’s energy transition, climate resilience, and sustainable growth.
These include renewable energy, sustainable transport systems, water supply, ICT infrastructure, and urban development.
Africa50 CEO, Alain Ebobissé, hailed the first close as a strong signal of investor confidence:
“Since AGIA’s launch at COP27, we have moved from ambition to execution.
This milestone demonstrates our partners’ trust in Africa’s ability to design, develop, and deliver green infrastructure projects.
By unlocking early-stage project capital, we will strengthen local capacity and accelerate Africa’s transition toward a sustainable and resilient future.”
The $118 million first close attracted leading institutional investors, including:
African Development Bank (AfDB)
German Development Cooperation (KfW)
West African Development Bank (BOAD)
UK’s Foreign, Commonwealth & Development Office (FCDO)
Soros Economic Development Fund (SEDF)
African Climate Foundation (ACF)
Three Cairns Group
According to AfDB Vice President for Infrastructure, Solomon Quaynor, the Bank’s $40 million contribution reflects a bold commitment to sharing early-stage risks.
“This investment represents more than capital; it is a declaration that AfDB will stand with partners to unlock Africa’s green infrastructure potential. Our blended-finance model will catalyze billions in private-sector investment for low-carbon, climate-resilient projects,” Quaynor said.
For decades, Africa’s infrastructure financing gap—estimated at over $100 billion annually—has been a major barrier to sustainable growth.
Many projects stall at the feasibility stage due to limited development capital, making them unattractive to private investors.
The AGIA-PD fund directly tackles this challenge by derisking early-stage projects, building capacity for local developers, and expanding the continent’s portfolio of bankable projects.
BOAD President, Serge Ekue, emphasized the catalytic role of AGIA:
“This initiative will help close Africa’s infrastructure gap by creating new pathways for private sector participation.
Our support reflects our dedication to fostering innovative green projects in West Africa and beyond.”
The initiative has also drawn praise from global partners.
The UK Minister of State for Development, Jenny Chapman, said Britain’s investment will help African-led projects like solar farms, water treatment plants, and clean transport systems that strengthen local economies.
Similarly, SEDF CEO Georgia Levenson Keohane described AGIA as a “transformative Africa-led partnership” that will enhance climate resilience while driving inclusive and sustainable growth.
Mark Gallogly, co-founder of the Three Cairns Group, noted that the biggest obstacle to scaling renewable energy in Africa remains the lack of bankable projects:
“AGIA’s first close is a milestone in overcoming this challenge.
By deploying catalytic capital into early-stage development, we are unlocking economic opportunities across the continent.”
AGIA ultimately seeks to raise up to $500 million in blended capital—including $100 million for project preparation and $400 million for project development—to generate as much as $10 billion in investment opportunities for private investors.
With global climate finance flows still skewed away from Africa, this fund represents a significant step toward bridging the financing gap and ensuring the continent leads its own green growth agenda.
As Africa faces intensifying climate risks, the successful first close of AGIA-PD positions Africa50 and its partners as pivotal players in the continent’s sustainable future.