The Africa Investment Forum (AIF) – an investment marketplace championed by the African Development Bank (AfDB) and its partners to accelerate investment in Africa, recently showcased US$1,475 billion in renewable energy deals to investors at AfDB’s 2023 Annual Meetings, which took place in Sharm El Sheikh Egypt last week.
The curated projects, according to AIF, are drawn from all of Africa’s regions, and were sourced from the Africa Investment Forum’s pipeline.
The projects showcased included a hybrid hydrogen feedstock/green ammonia project in North Africa that will source 400 MW of renewable energy to produce 183 tons of green hydrogen feedstock daily to generate 1,000 tons a day of green ammonia via electrolysis. Additional investment of $27 million is needed to move the project towards bankability.
Another project showcased was a 27 MW hydropower project in West Africa, that has successfully undergone feasibility assessments. It has also attracted funding support from a number of international entities and multilateral development agencies. Among projected benefits, the deal will service 700,000 households, generate 600 direct and indirect jobs over the life of the project, and reduce Co2 emissions by 81,000 tons each year. The project represents an increase of 10% in the country’s total electricity generation capacity.
A $440 million hydropower project in Southern Africa that will generate 544,000 MWh/year of energy was also showcased. It will also include 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 finalise the project’s development phase.
Relevance of AIF in Africa
Africa Investment Forum Senior Director Chinelo Anohu said, “there is a need for the Africa Investment Forum on the continent. We can’t overemphasise both the convening power and the strength of the platform.” She said the transactions showcased represented only a small part of the platform’s portfolio.
In addition to the African Development Bank, representatives of the Africa Investment Forum founding partners Africa Finance Corporation, Africa50, Islamic Development Bank, Development Bank of Southern Africa, Trade and Development Bank and Afreximbank attended.
The event also included an update on the Africa Investment Forum’s current pipeline, comprising 90 deals valued at $62.9 billion and classified as either in the capital raise phase or the bankability phase.