The African Development Bank’s Sustainable Energy Fund for Africa (SEFA) has announced a $20 million investment, divided equally between the ARM-Harith Successor Infrastructure Equity Fund and the Persistent Africa Climate Venture Builder Fund (ACV Fund).
The funding aims to bolster sustainable infrastructure and foster climate tech innovation across Africa.
SEFA’s $10 million investment in the ARM-Harith Fund will enhance access to reliable electricity, modern transport systems, and energy-efficient technologies across West Africa, with a primary focus on Nigeria. ARM-Harith targets raising $200 million for these projects, leveraging capital from local and international investors.
“This investment in the ARM-Harith Successor Infrastructure Equity Fund represents a significant step forward in building sustainable infrastructure across Africa,” said Wale Shonibare, the Bank’s Director for Energy Financial Solutions. “It underscores the power of collaboration in mobilizing private sector investment and delivering lasting benefits to communities.”
Rachel Moré-Oshodi, Managing Director and CEO of ARM-Harith, emphasized the Fund’s groundbreaking approach: “This collaboration sets a new standard for innovation and impactful investing, mobilizing domestic capital and channeling resources toward sustainable development across Africa.”
The ARM-Harith Fund, managed by ARM-Harith Infrastructure Investments Limited (ARMHIIL), will build on the success of its inaugural fund, which received catalytic backing from AfDB in 2015.
It is expected to deliver significant benefits, including 200 MW of renewable energy capacity, 800,000 tons of CO2 reductions, 10,000 jobs, and improved energy access for 100,000 households.
Meanwhile, SEFA’s $10 million investment in the ACV Fund seeks to propel climate tech entrepreneurship across Sub-Saharan Africa, unlocking $70 million for climate-focused ventures. João Duarte Cunha, Manager of AfDB’s Renewable Energy Funds Division, highlighted Africa’s dual role in the climate crisis and opportunity: “We are keen to catalyze venture capital for promising African start-ups developing innovative solutions to complex climate and development challenges.”
These investments align with AfDB’s High Five priorities, particularly “Light Up and Power Africa,” “Industrialize Africa,” and “Improve the Quality of Life for the People of Africa.” They also support the Bank’s New Deal on Energy for Africa, the Climate Change and Green Growth Action Plan 2021-2025, and the M300 initiative to electrify 300 million Africans by 2030.