The Africa Investment Forum presented four renewable energy and sustainability projects worth almost $1.5bn to investors during the African Development Bank Group’s 2023 Annual Meetings.
The projects are from all regions of Africa and were sourced from the Africa Investment Forum’s pipeline. They show the need to accelerate climate action in Africa, the most vulnerable region to climate change, including closing financing gaps by securing an ever-increasing share of global capital for the continent.
The African Development Bank’s 2023 Annual Meetings are being held under the theme, Mobilizing Private Sector Financing for Climate and Green Growth in Africa.
The investment roundtable, held in Sharm El Sheikh, attracted a range of private investors, including venture capital and private equity firms.
The transactions included 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, which will generate 1,000 tons of green ammonia per day via electrolysis, without emitting Co2. Additional investment of $27m is needed to move the project towards bankability.
The second transaction is 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.
The investment roundtable also featured an opportunity to invest in a $73m plastic recycling and sustainability company’s expansion drive into seven African countries across West, Central and Southern Africa. The project has attracted the interest of several funders of project preparation and technical assistance to conduct feasibility studies in the target countries. It promises important benefits: creation of 16,000 jobs as well as opportunities for 20,000 waste pickers in targeted countries. It will also divert 214,000 metric tons of plastic waste (PET,PP,PE) from landfill dumps and reduce carbon emissions by 149,000 metric tons. Currently only 10% of Africa’s plastics are recycled. The project resonated positively with growth capital investors that attended the roundtable.
The fourth transaction is an opportunity to invest in a $440m Southern Africa hydropower independent power producer that will generate 544,000 MWh/year of energy. 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 $12.5m to finalize the project’s development phase.
Africa Investment Forum Senior Director, Chinelo Anohu, hosted the event. She said, “there is a need for the Africa Investment Forum on the continent. We can’t overemphasize both the convening power and the strength of the platform.” She said the transactions showcased represented only a small part of the platform 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.
Investors present asked follow-up questions to learn more about the projects presented.
The event also included an update on the Africa Investment Forum’s current pipeline, comprising 90 deals valued at $62.9bn and classified as either in the capital raise phase or the bankability phase.
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 showcase transactions that are ready to progress toward closure.
Championed by the African Development Bank and seven other founding partners (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 Africa’s investment gaps.