AfDB approves Africa's renewable energy fund

African Development Bank (AFDB) has approved an equity investment of $20 million in Evolution Fund III, a pan-African clean and sustainable energy private equity fund that is mobilising about $400 million over 10 years in renewable energy and resource-efficient assets in sub-Saharan Africa. Evolution Fund III, managed by a fund manager with more than 15 years of experience, has a track record of investing more than $310 million in renewable energy projects in African nations, and its predecessor funds have produced 21 renewable energy projects with a combined generation capacity of 2 GW.

AFDB's support is expected to contribute to an additional 2,162MW of installed renewable power generation capacity, 1.8m tons of CO2 emission savings, and green and sustainable growth across Africa by creating 2,480 full-time jobs, building on the track record of Evolution Funds I and II, which generated about 1,309 jobs out of which 22% were women.

The AfDB's support of a private equity fund aims at promoting renewable energy in Africa and will help member nations of the region fulfil their Paris Agreement and Nationally Determined Contributions obligations, according to Wale Shonibare, Director of energy financial solutions, policy, and regulations.