AfDB Backs Sustainable Infrastructure in West Africa with $10 Million Investment​​

The African Development Bank (AfDB) has announced a $10 million concessional equity investment in the ARM-Harith Successor Infrastructure Equity Fund. This initiative aims to enhance access to dependable electricity, modern transportation systems, and energy-efficient technologies across Nigeria and the broader West Africa region.

This strategic funding, provided through the bank-managed Sustainable Energy Fund for Africa (SEFA), is expected to attract further investments from both local and international sources. The ARM-Harith fund is targeting a total capital raise of $200 million to finance sustainable infrastructure and energy transition projects, with a primary focus on Nigeria. SEFA, a multi-donor special fund, plays a critical role in unlocking private sector investments in renewable energy and energy efficiency.

Managed by ARM-Harith Infrastructure Investments, the ARM-Harith Successor Infrastructure Equity Fund addresses a pressing need for equity financing in the region’s infrastructure sector. Its innovative model incorporates capital raised in both US dollars and Nigerian naira, enabling participation from diverse investors, including local pension funds.

Wale Shonibare, Director for Energy Financial Solutions at AfDB, emphasized the importance of the investment: “This partnership with ARM-Harith and SEFA’s involvement highlights how collaboration can mobilize private sector funding, including local currency, to create sustainable infrastructure and deliver a lasting positive impact for communities across Africa.”

Rachel Moré-Oshodi, Managing Director and CEO of ARM-Harith, expressed her enthusiasm for the partnership: “Working with the African Development Bank on this strategic initiative represents a significant milestone for impactful investing. By mobilizing domestic capital for infrastructure development, we are setting a new benchmark for innovation and sustainable growth across Africa.”

This initiative exemplifies the power of strategic partnerships in advancing Africa’s development agenda, paving the way for a resilient and self-sufficient continent.