AfDB approves $25m to fasttrack renewal energy projects in Sub-Sahara African States

Date:

Kaberuka Emphasizes Infrastructure Financing and Maintenance at Times CEO Forum10The African Development Bank (AfDB) on Friday, said it had approved an equity investment of 25 million dollars into the continent’s renewable Energy Fund (AREF) to fast track energy development.

Thank you for reading this post, don't forget to subscribe!

In a statement in Addis Ababa and made available to the News Agency of Nigeria (NAN), the bank said that the approval for the investment was given by the bank’s Board of Directors on Wednesday.

“The AfDB approved a 25 million dollars equity investment in the Africa Renewable Energy Fund (AREF) and acknowledged the mobilisation of 39.5 million dollars from other partners.

“The Energy Fund is a private equity fund that will invest in small to medium-sized renewable energy projects in Sub-Saharan Africa, excluding South Africa, with a targeted fund size of 150 million dollars to 200 million,“ it stated.

The bank also said that Africa needed to adapt to climate change and embark on low-carbon growth paths, adding that estimated cost of such adaptation ranged from 22 billion dollars to 31 billion dollars per annum between now and 2015.

According to the bank, however, only few pan-African infrastructure funds had scope to make clean technology investments.

It noted that there was a dearth of funds that were dedicated to renewable energy investment or had an investment focus targeting Sub-Saharan Africa.

The bank said that AREF would have a significant impact in facilitating greater private capital inflows into clean energy technology industries across Africa.

“By investing in clean technology solutions, AREF will assist governments in meeting their renewable energy and carbon emission targets, while contributing to job creation, income generation, increased services delivery and government revenues,“ it explained.

NAN reports that AREF was set up to contribute to the investment needs of Sub-Saharan Africa and to build sustainable renewable energy industries across the region. (NAN)

Babatunde Akinsola
Babatunde Akinsolahttps://naija247news.com
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

Share post:

Subscribe

Popular

More like this
Related

Nigeria Continues Crude-for-Petrol Swap Amid Deregulation Debate

Nigeria is still exchanging 450,000 barrels of crude oil...

NCAA to Launch Consumer Protection Platform for Aviation Sector

The Nigerian Civil Aviation Authority (NCAA) is developing a...
× How can I help you?