AfDB invests $20m to support renewable energy in sub-Saharan Africa

By Joy Obakeye

The African Development Bank Group (AfDB) has approved an equity investment of $ 20 million in Evolution Fund III, a pan-African clean and sustainable energy private equity fund that is mobilising about $ 400 million into renewable energy and resource-efficiency assets across sub-Saharan Africa over ten years.

Inspired Evolution Investment Management is a fund manager with over 15 years of experience and a record of deploying more than $ 310 million in renewable energy projects in African countries, according to the Bank’s statement.

The fund manager, through its predecessor funds, has delivered 21 renewable energy projects with a total generation capacity of 2GW.

Evolution Fund III aims to broaden geographic and technology scope to incorporate North Africa, as well as several sub-Saharan African countries, and decentralised energy business models, as the key climate mitigation and energy transition strategy.
AfDB says its support will contribute to an additional 2,162MW of installed renewable power generation capacity, 1.8-million tons of carbon dioxide emission savings and the creation of 2,480 full-time jobs.

The Evolution Fund III is well placed to invest much-needed capital in long-term, low-carbon, and climate-resilient development pathways toward achieving a just, net-zero future for African countries.

Vice President, of Power, Energy, Climate Change and Green Growth Complex, AfDB, Kevin Kariuki, was quoted as saying that the bank is committed to boosting its portfolio of renewable energy projects and encouraging private investment in renewable and efficient energy solutions.

“The Evolution Fund III is well placed to invest much-needed capital in long-term, low-carbon and climate-resilient development pathways towards achieving a just, net-zero future for African countries,” Kariuki said.

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The Bank’s investment in Evolution Fund III aligns with its High Five objectives, particularly, “Light Up and Power Africa” under its New Deal on Energy for Africa.

According to the Director, of Energy Financial Solutions, Policy & Regulations, Wale Shonibare, the Bank’s support for a private equity fund focused on promoting renewable energy in Africa, will assist regional member countries to achieve their Nationally Determined Contributions and Paris Agreement obligations.

Co-Managing Partner at Inspired Evolution, Christopher Clarke, said: “AfDB has been a consistent supporter of Inspired Evolution since 2010 and this third capital commitment evidences our trusted partner that has been established in the delivery of the AfDB climate goals for Africa.”