AFDB Invests $10 Million To Boost Sustainable Infrastructure

The ARM-Harith Successor Infrastructure Equity Fund has received approval for a $10 million concessional equity investment from the African Development Bank Group.

The objective of this initiative is to increase access to energy-efficient technologies, modern transportation infrastructure, and dependable electricity in Nigeria and the wider West African region.

Wale Shonibare, the African Development Bank’s Director for Energy Financial Solutions, emphasised the importance of this investment, stating, “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 mobilizing private sector investment (including local currency) and achieving lasting positive impact for communities across the continent.”

It is anticipated that the investment, which will come from the Sustainable Energy Fund for Africa (SEFA), which is managed by the Bank, will spur further investments from domestic and foreign sources.

In order to fund energy transition and sustainable infrastructure projects throughout West Africa, with an emphasis on Nigeria, ARM-Harith is aiming to raise a total of $200 million.

A multi-donor Special Fund, the Sustainable Energy Fund for Africa (SEFA) aims to catalyse private sector investment in energy efficiency and renewable energy projects.

A ground-breaking effort to address the severe lack of equity funding in the region’s infrastructure industry is the ARM-Harith Successor Infrastructure Equity Fund, which is overseen by ARM-Harith Infrastructure Investments (ARMHII).

The fund will raise cash in both US dollars and Nigerian Naira thanks to its creative structure, drawing in a wide spectrum of investors, including regional pension funds, to optimise its total impact.

The ARM-Harith Successor Infrastructure Equity Fund expands on the profitable investing approach and proven performance history of ARMHII’s first fund, which was approved by the Bank in 2015.

The Fund emphasises innovation and trailblazing advancements with a focus on energy transition and sustainable infrastructure projects.

200 MW of renewable energy capacity will be added, 800,000 tonnes of CO2 emissions will be reduced, 10,000 jobs will be created, and 100,000 families will have better access to energy.

These initiatives have the potential to have a major positive impact on the economy, society, and environment.

Rachel Moré-Oshodi, Managing Director and CEO of ARM-Harith stated, “We at ARM-Harith are privileged to partner with the African Development Bank on this strategic initiative.”

This collaboration sets a new standard for transformative investing and innovation, which is exactly in line with our goal of creating a prosperous and independent continent.

It demonstrates the transformative power of strategic partnerships in directing resources towards sustainable development throughout Africa by enlisting indigenous capital for infrastructure development.

Manomsi Mallum/Techinafrica