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AfDB Annual Meetings: Building bankable green infrastructure projects in Africa
Vice President; Private Sector, Infrastructure and Industrialisation at the Africa Development Bank, Solomon Quaynor spoke with CNBC Africa at the 58th Annual Meetings of the AfDB in Egypt.
Thu, 25 May 2023 14:39:41 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The creation of the Alliance for Green Infrastructure in Africa to raise $500 million for project development in various sectors.
- The collaboration with global partners and non-state actors to leverage investments and bridge the financing gap in African infrastructure projects.
- The emphasis on de-risking mechanisms, credit enhancements, and feasibility studies to attract institutional investors and make projects bankable.
The 58th Annual Meetings of the African Development Bank (AfDB) held in Sharm el Sheikh saw discussions on mobilizing private sector financing for climate-friendly projects in Africa. Solomon Adegbe Quaynor, the Vice President of Private Sector, Infrastructure, and Industrialization at AfDB, highlighted the importance of creating a conducive environment for private sector investment in green infrastructure. Quaynor emphasized the need for stable cash flows, government commitment, regulatory clarity, and credible decision-making to attract institutional money towards sustainable projects. In response to these challenges, AfDB introduced the Alliance for Green Infrastructure in Africa, aiming to raise $500 million for project development in sectors like energy, transport, ICT, water, and healthcare.
The Alliance for Green Infrastructure is a collaborative effort between AfDB, Africa 50, the African Union Commission, AUDA-NEPAD, and Team Europe, along with partners like Agence Francaise, EIB, EBRD, and the Rockefeller Foundation. By pooling their resources, the alliance seeks to generate $10 billion in green investments, leveraging the initial funding for project preparation. Quaynor underscored the importance of partnerships with global stakeholders and non-state actors to bridge the financing gap in Africa's infrastructure development.
The interview also addressed the need for short-term structural reforms to transition to a greener economy. Quaynor highlighted the role of the alliance in complementing government initiatives and engaging with civil society to ensure acceptance of infrastructure projects. The focus on de-risking instruments and credit enhancement for institutional investors like pension funds and sovereign wealth funds was emphasized to attract capital towards green infrastructure.
Incorporating feedback from the Annual Meetings, Quaynor stressed the significance of multilateral development banks taking higher risks to stimulate private sector financing in green projects. He highlighted the importance of working with governments to improve the enabling environment and create regulatory certainty for investors. By providing de-risking mechanisms and credit enhancements, development finance institutions can attract institutional funds towards sustainable infrastructure projects.
The $500 million allocated for project development by AfDB aims to support feasibility studies and preparation to make projects bankable. Quaynor emphasized the significance of reaching bankable feasibility to instill investor confidence and facilitate the flow of capital into green infrastructure projects. The initiative aligns with the broader goal of accelerating infrastructure development in Africa while ensuring resilience to climate challenges and reducing lifecycle costs.
Overall, the discussions at the AfDB Annual Meetings underscored the critical need for innovative approaches to bridge the financing gap and promote sustainable infrastructure development in Africa. The Alliance for Green Infrastructure in Africa represents a significant step towards mobilizing private sector financing and creating a conducive environment for green investments.
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