AfDB commits $10m to infrastructure fund
The African Development Bank has approved a $10 million concessional equity investment in the ARM-Harith Successor Infrastructure Equity Fund.
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The African Development Bank (AfDB) has approved a $10 million concessional equity investment in the ARM-Harith Successor Infrastructure Equity Fund to increase access to reliable electricity and modern transportation infrastructure as well as energy-efficient technologies in Nigeria and the wider West Africa region.
The catalytic investment, to be sourced from the bank-managed Sustainable Energy Fund for Africa (SEFA), will leverage additional capital from local and international investors, as ARM-Harith targets raising $200 million for sustainable infrastructure and energy transition projects across West Africa, with a particular focus on Nigeria. SEFA is a multi-donor special fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency.
The ARM-Harith Successor Infrastructure Equity Fund, managed by ARM-Harith Infrastructure Investments, is designed to address a critical shortage of equity financing in the region's infrastructure sector. Through its innovative structure, it will raise capital in both US dollars and Nigerian naira, attracting diverse investor pools, including local pension funds.
Wale Shonibare, AfDB director for energy financial solutions, said: "This investment in the ARM-Harith Successor Infrastructure Equity Fund represents a significant step forward in our collective effort to build sustainable infrastructure across Africa. The partnership with ARM-Harith, coupled with SEFA's catalytic role, demonstrates the power of collaboration in mobilising private sector investment (including local currency) and achieving lasting positive impact for communities across the continent."
"We at ARM-Harith are privileged to partner with the African Development Bank on this strategic initiative," said Rachel Moré-Oshodi, ARM-Harith’s managing director and CEO. "This collaboration sets a new standard for innovation and impactful investing, aligning perfectly with our vision of a thriving and self-sufficient continent. This crucial support is mobilising domestic capital for infrastructure development and exemplifies the significant impact of strategic partnerships in channeling resources toward sustainable development across Africa."
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