Development finance institutions (DFIs) are pumping significant resources into Africa, and patterns in the sector provide a clear read into where institutional priorities currently lie. Throughout 2025, renewable energy and climate-resilient infrastructure absorbed the largest share of concessional and blended finance. Transport, digital connectivity and private sector development are also being consolidated as core areas of focus, with African-led financial institutions claiming an increasing role in shaping how development finance flows across the continent.
EIB’s investments focus on climate action
EIB Global, the development arm of the European Investment Bank, deployed €3.1 billion in Africa in 2025, roughly a third of its global total of €9 billion. Almost 46% of Africa’s portfolio is directed towards climate action and environmental sustainability, with major investments spanning renewable energy, water infrastructure, transport and health. While Morocco, Nigeria, Mauritania, Egypt and Malawi were the top beneficiaries, EIB Global also expanded lending to smaller frontier markets such as Gambia, Sao Tome and Principe and Cape Verde.
Key deals include support for Egypt’s Obelisk solar power and battery storage project, the largest facility on the African continent, and rural electrification across Cameroon, benefiting more than 1.6 million people. EIB Global has also committed more than €350 million to a new venture capital fund, including vehicles managed by Amethis and Ardian, as part of a broader push to grow Africa’s private capital ecosystem.
AfDB pursues Mission 300 goals with 10 years of major investments
From 2016 to 2025, the African Development Bank (AfDB) committed $12.74 billion to energy projects, connecting more than 28 million Africans to electricity and financing approximately 40,000 kilometers of distribution lines. Mission 300 is a joint initiative between the AfDB and the World Bank that targets 300 million new electricity connections by 2030, with National Energy Compacts currently guiding country-level investment priorities and serving as the Bank’s organizing framework for energy finance.
Key transactions in 2025 include a $200 million loan to Rwanda’s Energy Sector Results-Based Financing Program, complemented by a $100 million co-financing from the Asian Infrastructure Investment Bank, as well as the bank’s $140 million contribution to Egypt’s 1.1 GW Suez Wind Farm Project, the largest wind energy project on the African continent. The African Development Fund’s ADF-17 replenishment cycle also mobilized a historic $11 billion in December 2025, with energy access as a core strategic priority.
AFC leads intercontinental financing drive
The African Finance Corporation (AFC) has shifted its focus to capital mobilization as a deciding theme for 2025, building on its record in 2024, when its revenue exceeded $1 billion for the first time. During the year, AFC closed the landmark $524 million bicurrency Samurai Tam loan, the largest to date, and raised a $400 million Shariah-compliant Murabaha facility, demonstrating the growing interest of Japanese and Islamic capital markets in African infrastructure.
In October 2025, AFC jointly launched the $1.5 billion AAMFI Infrastructure Financing Facility with the African Union Development Agency (AUDA-NEPAD), initially focusing on energy, transport, water, and ICT projects. This initiative reflects the AFC’s broader advocacy set out in its 2025 Africa State Infrastructure Report. The continent has over $1.1 trillion in domestic savings, which remain underutilized for infrastructure financing. AFC-backed Infinity Power also completed closing on Egypt’s 200MW Ras Ghaleb wind farm in October 2025, securing $153 million in senior debt.
DFC, IFC, and renewed attention to minerals
Beyond African multilateral agreements, the U.S. International Development Finance Corporation (DFC), with an African portfolio of more than $13 billion, expanded its strategic reach to oil and gas infrastructure in 2025, reflecting a broader definition of U.S. energy security finance.
DFC also partnered with Orion and Abu Dhabi-based ADQ to launch the $1.8 billion Orion Critical Minerals Consortium, targeting mineral production in emerging markets. Meanwhile, the World Bank’s International Finance Corporation has begun moving toward establishing the African Transition and Adaptation Fund (ATAF). ATAF is a $200-250 million vehicle that combines development finance and private capital for clean energy and energy-efficient industrial projects.
Taken together, the deployment data paints a picture of funding that is delivering on large-scale infrastructure construction efforts. As the market moves towards 2026, clean energy and climate resilience will continue to be key drivers of concessional and blended capital. But strategic consensus is spreading to critical minerals, African-owned financing structures, and baseload and grid infrastructure that cannot be delivered through renewables alone.
