African and Global partners launch Multi-Billion Alliance for Green Infrastructure at COP27
The Alliance aims to raise up to $500 million of early-stage project preparation and development capital. Goal: boost project bankability and generate up to $10 billion in investment opportunities for the private sector.
The African Union, the African Development Bank Group and Africa50—in partnership with several global partners—have launched the Alliance for Green Infrastructure in Africa (AGIA), an initiative to help scale and accelerate financing for green infrastructure projects in Africa.
The collaborating global partners working with the African Union, African Development Bank and Africa50 are the European Investment Bank, the European Bank for Reconstruction and Development, the French Development Agency, The Rockefeller Foundation, the US Trade and Development Agency, the Global Center on Adaptation, the Private Infrastructure Development Group, and the African Sovereign Investors Forum.
The launch ceremony took place on Wednesday on the sidelines of the ongoing 27th annual global climate summit (COP27) in Sharm El-Sheikh, Egypt.
The Alliance’s mission is to raise significant capital to accelerate Africa’s just and equitable transition to Net Zero emissions. It has two strategic objectives. The first is to generate a robust pipeline of transformational bankable projects. The second is to catalyze financing at scale and speed for Africa’s infrastructure.
Following the announcement of the Alliance at the 6th European Union-African Union Summit in Brussels in February this year, the partners began their collaborative work and identified four pillars for collective action:
Project Preparation and Development – This pillar supports the transformation of projects from concept to bankable propositions. It also develops a strong pipeline of bankable green infrastructure projects.
Project Ratings – This pillar establishes green eligibility criteria and project rating guidelines for infrastructure projects. It also provides technical assistance to build capacity within the public sector.
Co-financing and De-risking – This pillar provides the requisite de-risking instruments to facilitate investment and develop a clear framework to mobilize equity and debt financing for green infrastructure from AGIA members and other sources.
Institutional Investors – The Institutional Investors pillar facilitates the mobilization of funds from global and African institutional investors and leveraging African and international capital markets to drive green bond issuances and financing for projects.