The African Development Bank’s Sustainable Energy Fund for Africa has ramped up its development drive on the continent with its recent $10 million concessional equity investment in the ARM-Harith Successor Infrastructure Equity Fund and $10 million equity investment in the Persistent Africa Climate Venture Builder Fund (ACV Fund).
The investment with the ARM-Harith Successor Infrastructure Equity Fund is 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 investment 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.
The ARM-Harith Successor Infrastructure Equity Fund, managed by ARM-Harith Infrastructure Investments Limited (ARMHIIL), is a pioneering initiative 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 the Naira, attracting diverse investor pools, including local pension funds, and significantly boosting the Fund’s impact. The ARM-Harith Successor Infrastructure Equity Fund builds on the investment strategy and strong track record of ARMHIIL’s inaugural fund, which received a catalytic investment from the Bank in 2015.
By investing in sustainable infrastructure and energy transition projects and emphasising innovation and first-of-a-kind developments, the Fund is expected to generate significant environmental, economic, and social benefits. These include adding 200 MW of renewable energy capacity, reducing 800,000 tons of CO2 emissions, creating 10,000 jobs, and improving energy access for 100,000 households.
The Bank’s investment in both firms aligns with its High Five priorities, particularly Light Up and Power Africa, Industrialise Africa and Improve the Quality of Life for the People of Africa. It also advances Bank targets under the New Deal on Energy for Africa and the Climate Change and Green Growth Action Plan 2021-2025, and the M300 initiative (Mission 300), which aims to bring electricity to 300 million Africans by 2030.
Speaking on the development, African Development Bank Director for Energy Financial Solutions, Wale Shonibare, 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.”
ARM-Harith’s Managing Director and Chief Executive Officer, Rachel Moré-Oshodi, said: “We at ARM-Harith are privileged to partner with the African Development Bank on this strategic initiative. 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 channelling resources toward sustainable development across Africa.”
Similarly, the investment in the ACV Fund is to propel climate technology entrepreneurship across Sub-Saharan Africa. This catalytic investment aims to unlock $70 million in funding for African climate-focused ventures.
Manager of the Bank Group’s Renewable Energy Funds Division, João Duarte Cunha, said Africa is at the forefront of both the climate crisis and the climate opportunity. “We are keen to catalyze more risk and venture capital to support promising African technology start-ups developing commercial solutions to complex climate and development issues. We look forward to our partnership with Persistent as one of the more seasoned early-stage investors in the continent, with a strong track record in energy access and clean energy transition.”
