AfDB launches green bank to accelerate sustainable growth

The African Development Bank Group (AfDB) is launching a new green bank to decarbonise several sectors of the African economy, following the recent Dutch fund ILX Management and AfDB’s climate finance agreement.

The AfDB’s new green bank is set to invest in smart agriculture, energy efficiency and renewable energy, the bank’s financial mechanism will focus on resilient and sustainable growth, launched with a $1.6 million capital.

“The AfDB will eventually mobilize US$10 million through the support of the African Green Finance Facility Fund (AG3F) whose mission is to assist African states in the implementation of their nationally determined contributions (NDCs),” said the AfDB.

The green bank project includes: Amundi, the World Bank’s Climate Investment Fund (CIF), the Climate Action in Africa by Global Affairs Canada as partners.

The partnership will support the climate finance component of the National Investment Bank (NBI) of Ivory Coast and Caisse dépôts et consignations of Benin.

“We will benefit from their technical knowledge, their investment vehicles and their financing capacity to create the first African green finance facilities by offering direct access to climate finance,” said Audrey-Cynthia Yamadjako, the coordinator of AG3F.

The partners’ support will aid with the implementation of energy transition projects developed by small and medium-sized enterprises (SMEs) and local communities.