The Board of Directors of the African Development Bank (AfDB) Group has approved an equity investment of 20 million dollars in Evolution Fund III (EVIII).
In a statement issued by the Communication and External Relations Department of the AfDB, the approval was done on Wednesday.
The EVIII is a pan-African clean and sustainable energy private equity fund.
The fund is mobilising about 400 million dollars into renewable energy and resource-efficiency assets across sub-Saharan Africa over a 10-year period.
Kevin Kariuki, Vice President, AfDB’s Power, Energy, Climate Change and Green Growth Complex, said the bank was committed to boosting its portfolio of renewable energy projects.
Kariuki also said the bank was encouraging private investment in renewable and efficient energy solutions.
“The Evolution Fund III is well placed to invest much-needed capital in long-term, low-carbon and climate-resilient development pathways towards achieving a just, net-zero future for African countries,” he said.
According to Wale Shonibare, Director Energy Financial Solutions, Policy and Regulations, the bank’s support for a private equity fund, focused on promoting renewable energy in Africa, will assist regional member countries to achieve their Nationally Determined Contributions and Paris Agreement obligations.
Christopher Clarke, Co-Managing Partner at Inspired Evolution, said AfDB had been a consistent supporter of Inspired Evolution since 2010.
“This third capital commitment evidences our trusted partnership that has been established in the delivery of the AfDB climate goals for Africa,” Clarke said.
Wayne Keast, Co-Managing Partner at Inspired Evolution, said: “AfDB’s investment validates our track record and sophisticated investment management approach to accelerating Africa’s clean energy transition.”
According to the statement, Inspired Evolution Investment Management, is a well-established fund manager with more than 15 years of experience and a track record of deploying more than 310 million dollars in renewable energy projects in African countries.
The fund manager, through its predecessor funds, has delivered 21 renewable energy projects with a total generation capacity of two gigawatts.
Also, according to the statement, EVIII aims to broaden geographic and technology scope to incorporate North Africa as well as several sub-Saharan Africa countries and decentralised energy business models as the key climate mitigation and energy transition.
The bank’s support is expected to contribute to an additional 2,162 megawatts of installed renewable power generation capacity and 1.8 million tons of carbon dioxide emission savings.
It is also expected to contribute green and sustainable growth across Africa by creating 2,480 full-time jobs.
The bank’s investment in EVIII aligns with its High Five objectives, particularly, “Light Up and Power Africa” under its New Deal on Energy for Africa.
