The African Development Bank has approved a $100 million loan to the Emerging Africa and Asia Infrastructure Fund to strengthen sustainable infrastructure development across the continent. The loan is aimed at leveraging more private capital to support innovative projects in renewable energy, transportation, digital connectivity and other areas critical to Africa’s economic growth, an announcement posted on the Bank’s website said.
The facility has been approved by the World Bank’s Board of Directors and forms part of a broader strategy to close Africa’s growing infrastructure financing gap and foster more resilient and inclusive development. The plan also fits within the Fund’s broader debt financing program, which plans to secure $300 million in long-term funding in 2025 and deploy more than $850 million across Africa and Asia by 2027. Although the World Bank did not specify the specific countries that would benefit, the approval signals continued support for frontier and developing markets that are struggling to access long-term financing.
The World Bank described the partnership as a strategic step toward financing the types of projects that will revitalize the economy and create jobs. It noted that the loan will strengthen the Fund’s ability to further deliver renewable energy, digital infrastructure and transport projects that will reduce poverty and improve lives across the continent.
The Emerging Africa and Asia Infrastructure Fund, operated under the Private Infrastructure Development Group and managed by Ninety-One, has become an important platform for private investors to mobilize into markets deemed high-risk. This latest loan is the Bank’s fourth loan to the Fund and strengthens our long-standing relationship.
The Bank’s new initiative comes at a time when it is increasing its support for innovative financial products. In September, it approved a $25 million equity investment in a currency exchange fund to expand access to local currency financing for African businesses. Since 2007, the Currency Exchange Fund has helped MSMEs and infrastructure developers reduce their exposure to currency fluctuations by hedging more than $17 billion in notional value, including more than $4 billion across 31 African countries.
In early August, the Bank also announced a $550 million framework in partnership with the Japan International Cooperation Agency to leverage private sector investment finance to accelerate sustainable growth and infrastructure deployment across Africa.
For small businesses and start-ups across the continent, this new financing represents a strong push towards improved infrastructure, improved digital access and more reliable energy systems. These are the foundations that enable MSMEs to grow, compete, and access regional and global markets.
By attracting more private capital into long-term development projects, the Bank aims to alleviate the bottlenecks that limit the expansion of many African entrepreneurs and create a more enabling business environment that can foster inclusive economic growth.
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