Africa Investment Forum Showcases $1.475 Billion in Green and Renewable Energy Deals at African Development Bank Annual Meetings 2023 | African Development Bank

The Africa Investment Forum presented four renewable energy and sustainability projects worth nearly $1.5 billion to investors on the sidelines of the African Development Bank Group’s annual meetings in 2023.

The curated projects, from all African regions, come from the pipeline of the Africa Investment Forum. They reflect the growing urgency in Africa, the world’s most vulnerable region to climate change, to accelerate climate action, including closing funding gaps by securing an increasing share of global capital for the continent.

The annual meetings of the African Development Bank in 2023 will be held under the theme: Mobilizing private sector finance for climate and green growth in Africa.

Held in Sharm El Sheikh, the investment roundtable attracted a range of private investors, including venture capital and private equity firms.

From hydropower to plastic recycling, green projects are showing plenty of opportunities on the continent

The transactions include a hybrid hydrogen feedstock/ammonia project in North Africa that will source 400 MW of renewable energy to produce 183 tons of hydrogen feedstock daily – with no CO2 emissions – to generate 1,000 tons of green ammonia per day via electrolysis. An additional investment of $27 million is required to make the project bankable.

The second transaction, in West Africa, is a 27 MW hydropower project that has successfully undergone feasibility assessments. It has also received funding from a number of international entities and multilateral development agencies. Among the expected benefits, the deal will serve 700,000 households, generate 600 direct and indirect jobs over the life of the project and reduce carbon emissions by 81,000 tons per year. The project represents a 10% increase in the country’s total electricity generation capacity.

The investment roundtable also provided an opportunity to invest in a $73 million plastic recycling and sustainability company’s expansion campaign in seven African countries in West, Central and South Africa. The project has aroused the interest of several project preparation and technical assistance funders to conduct feasibility studies in the target countries. It promises important benefits: creating 16,000 jobs and opportunities for 20,000 waste collectors in target countries. It will also divert 214,000 tons of plastic waste (PET,PP,PE) from landfills and reduce carbon emissions by 149,000 tons. Currently only 10% of Africa’s plastics are recycled. The project was well received by growth capital investors who attended the round table.

The transaction includes key technology features, including advanced processing lines and app-based collection and payment options. These features were seen as improving the project’s scalability across Africa and the project resonated positively with growth capital investors who attended the roundtable.

The fourth transaction is an opportunity to invest in a $440 million hydropower independent power producer in South Africa, which will generate 544,000 MWh/year of energy. It also includes water distribution and flood prevention elements. Other benefits include 3,000 construction jobs through project completion. The transaction sponsors are seeking $12.5 million to complete the development phase of the project.

Senior Director of Africa Investment Forum, Chinelo Anohu, hosted the event. She said: “There is a need for the Africa Investment Forum on the continent. We cannot overemphasize both the convening power and the power of the platform.” She said the trades shown represented only a small portion of the platform’s portfolio.

In addition to the African Development Bank, representatives of the founders of the Africa Investment Forum Africa Finance Corporation, Africa50, Islamic Development Bank, Development Bank of Southern Africa, Trade and Development Bank and Afreximbank were present.

Investors in attendance asked follow-up questions to learn more about the projects presented.

The event also included an update on the current pipeline from the Africa Investment Forum, comprising 90 deals valued at $62.9 billion and classified as either in the capital raise or fundability stage.

The Africa Investment Forum’s flagship Market Days event, to be held in November 2023, will bring together international deal sponsors, investors and government leaders to highlight trades ready to close.

Backed by the African Development Bank and seven other founders (Africa50, Africa Finance Corporation, Afreximbank, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank and Trade and Development Bank), the Africa Investment Forum is Africa’s investment marketplace to accelerate transactions to close the investment gap in Africa.