The African Development Bank’s Africa Sustainable Energy Fund is stepping up its development drive on the continent with a $10 million concessional equity investment in the ARM-Harris Successor Infrastructure Equity Fund and a further $10 million equity investment in the Permanent African Climate Venture Builder Fund (ACV Fund).
Investments by the ARM-Harith Successor Infrastructure Equity Fund aim to increase access to reliable electricity, modern transportation infrastructure and energy-efficient technologies in Nigeria and across the West African region.
ArmHarris aims to raise $200 million for sustainable infrastructure and energy transition projects across West Africa, with a particular focus on Nigeria, and the investment will leverage additional funding from domestic and international investors.
The ARM-Harris Successor Infrastructure Equity Fund, managed by ARM-Harris Infrastructure Investments Limited (ARMHIIL), is a pioneering initiative aimed at addressing the critical lack of equity financing in the region’s infrastructure sector. Through its innovative structure, it will raise capital in both USD and Naira, attracting a diverse range of investors, including local pension funds, and significantly increasing the Fund’s impact. The ARM-Harith Successor Infrastructure Equity Fund builds on the investment strategy and strong track record of ARMHIIL’s first fund, which received a catalytic investment from the bank in 2015.
The fund is expected to generate significant environmental, economic and social benefits by investing in sustainable infrastructure and energy transition projects, with a focus on innovation and unprecedented development. These include adding 200 MW of renewable energy capacity, reducing CO2 emissions by 800,000 tonnes, creating 10,000 jobs and improving energy access for 100,000 households.
The Bank’s investments in both companies are in line with High Five’s priorities, particularly ‘Lighting up and Empowering Africa’, ‘Industrializing Africa’ and ‘Improving the quality of life for Africans’. It will also advance the Bank’s goals under the New Deal on Energy for Africa, the Climate Change and Green Growth Action Plan for 2021-2025, and the M300 Initiative (Mission 300), which aims to provide electricity to 300 million Africans by 2030.
Commenting on the development, Wale Shonibare, Director of Energy Finance Solutions at the African Development Bank, said: “This investment in the ARM-Harris Infrastructure Equity Fund represents a significant step forward in our collective efforts to build sustainable infrastructure across Africa.”
He said the partnership with ARM-Harith, coupled with SEFA’s catalytic role, demonstrates the power of collaboration in mobilizing private sector investment (including local currency) and achieving lasting positive impact in communities across the continent. ”
Rachel, Managing Director and CEO of ARM-Harith Mr. Moré-Oshodi said, “We at ARM-Harith are proud to partner with the African Development Bank on this strategic initiative. This partnership sets new standards for innovation and impactful investing, and is fully aligned with our vision of a prosperous and self-sufficient continent. This important support demonstrates the significant impact of our strategic partnership in mobilizing domestic capital for infrastructure development and directing resources towards sustainable development in African countries.” Africa. ”
Similarly, investments in the ACV Fund aim to advance climate technology entrepreneurship across sub-Saharan Africa. This catalytic investment aims to raise $70 million in funding for climate change-focused ventures in Africa.
João Duarte Cunha, manager of renewable energy funds at the banking group, said Africa is at the forefront of both the climate crisis and the opportunities of climate change.
“We want to drive more risk and venture capital to support Africa’s promising technology startups that are developing commercial solutions to complex climate and development problems. We look forward to our partnership with Persistent as one of the continent’s most experienced early-stage investors with a strong track record in energy access and clean energy transition.”
