Rabat – ACWA Power and the African Development Bank (AfDB) formalized A framework agreement to support the sustainable and rapid progress of large-scale projects related to Africa’s energy and water sectors.
The parties signed the agreement yesterday on the sidelines of the African Investment Forum in Rabat. This agreement marks a milestone in leveraging finance for two of the continent’s most pressing issues: Africa’s electricity and water needs.
Under the new framework, ACWA Power and AfDB will work together to explore and finance projects in renewable energy sources, grid-connected generation and desalination.
The new partnership aims to mobilize up to $5 billion between 2025 and 2030 in response to Africa’s growing needs for energy transition and water security issues.
ACWA Power is known worldwide as the largest private producer of desalinated water and for excellence in the fields of renewable energy and green hydrogen, and sees the African continent as a key market for the future.
The company has extensive experience delivering complex infrastructure projects in emerging markets, and the new framework is designed to shorten development timelines by aligning technical expertise with AfDB’s financing capabilities and local knowledge.
The partnership will also have a particular focus on sub-Saharan Africa, which has the highest disparities in energy access compared to other regions. This partnership is closely aligned with Mission 300, a joint program between the AfDB and the World Bank Group.
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The program aims to provide energy access to 300 million people in sub-Saharan Africa by 2030 by providing electricity to the population through the project, which supports connection to the electricity grid and also supports renewable energy sources.
Apart from financial aid, the new agreement takes into account social development and environmental issues.
The parties have agreed to ensure that the projects they support adhere to strong sustainability, social equity and environmental stewardship processes, illustrating an industry trend among development funders towards more impact-focused finance.
The AfDB asserts that the framework not only leverages ACWA Power’s project development capabilities, but also supports the bank’s position as a promoter of private sector investment in infrastructure development.
This transaction represents an opportunity for ACWA Power to expand its reach through Africa’s water and power markets while reducing risk.
Seal of this cooperation framework reflect Momentum is building on delivering large-scale, financeable solutions to meet Africa’s energy and water needs.
The partnership leverages project experience from around the world and financial acumen in the region to drive progress towards achieving energy security and a green and growing Africa.
