West Africa: African Development Bank Group’s (AfDB) Sustainable Energy Fund Africa to provide $10 million anchor Investment in Arm-Harith Investment Fund for Sustainable Infrastructure
The Board of Directors of the African Development Bank Group (www.AfDB.org) 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 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 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 Nigerian 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.
Wale Shonibare, African Development Bank 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 channelling resources toward sustainable development across Africa.”
The Bank’s investment in ARM-Harith 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.
The Fund’s focus on private investment is in line with the Bank’s recently approved Ten Year Strategy 2024-2033 as well as with SEFA’s objective to drive private sector investment in emerging renewable energy markets.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Media Contact:
African Development Bank
Olufemi Terry
Communication and External Relations Department
email: media@afdb.org
About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
