The AfDB, the leading development finance institution in Africa, and the TDB, a regional African development finance group, have announced a joint investment of $15 million to support clean technologies and low-carbon projects in AfDB member states.
This investment, channeled through the Clean Technology Fund (CTF), a mechanism of the Climate Investment Funds, will also support the establishment of a project preparation mechanism to boost investments in clean technologies.
The TDB launched its Green+ Class C shares at COP27, with an initial investment of $15 million from the AfDB. These shares enable the TDB to mobilize funds to support eligible climate-aligned transactions in the public and private sectors.
To leveraging substantial resources from the private sector
These investments will contribute to climate action and the SDGs in TDB member states, resulting in significant long-term greenhouse gas emissions savings.
“We are delighted to receive this investment into our risk capital by CTF through our strategic partner, the African Development Bank, commented Admassu Tadesse, President and CEO of the TDB. The new equity supports TDB’s green growth and climate action agenda and our drive to assist member states to achieve their Nationally Determined Contributions. We value the African Development Bank’s pioneering role, which has generated much interest from other investors and catalyzed this investment, which endeavors to bring about impact and attractive financial returns.”
"This structure has a high replicability potential as it optimizes the use of limited concessional funding and contributes to leveraging substantial resources from the private sector, said Dr. Kevin Kariuki, Vice President of the African Development Bank for Power, Energy, Climate and Green Growth. We hope that CTF involvement will help attract additional investor participation in this share class and we welcome the creation of the project preparation mechanism unlocked by this investment."
“While much more capital is needed to support climate action in Africa, we are also facing constraints in the availability of bankable projects, with many projects failing at feasibility and business-planning stages, observed Mary Kamari, TDB Group Corporate Affairs and Investor Relations Executive. In this regard, we also look forward to CTF’s technical assistance support to unlock new project opportunities in our region and scale-up our impact in the climate space.”
TDB's Green+ Class C shares build on the success of Class B shares launched a decade ago and are open to investment from a wide range of impact investors.
