The African Development Bank (AfDB) has invested $10 million in the ARM-Harith Successor Infrastructure Equity Fund. This initiative aims to enhance access to electricity and modern transport infrastructure in Nigeria and West Africa.
The investment will support renewable energy projects, energy-efficient technologies, and sustainable infrastructure. The funds will come from the Bank-managed Sustainable Energy Fund for Africa (SEFA).
This catalytic financing will unlock additional capital from local and global investors. ARM-Harith targets raising $200 million for energy transition projects in the region, focusing on Nigeria.
Also Read: AfDB and Bank of Africa SA Sign €50 Million Deal to Support African SMEs
A Focus on Sustainability and Innovation
The ARM-Harith Successor Infrastructure Equity Fund, managed by ARM-Harith Infrastructure Investments Limited (ARMHIIL), addresses the lack of equity financing for infrastructure in West Africa.
The fund will raise capital in US dollars and Nigerian Naira. This dual-currency approach will attract a wide range of investors, including local pension funds.
The investment strategy builds on ARMHIIL’s inaugural fund, which the African Development Bank supported in 2015. The new fund focuses on innovative and first-of-a-kind developments.
Expected outcomes include adding 200 MW of renewable energy, reducing 800,000 tons of CO2 emissions, and creating 10,000 jobs. It will also improve energy access for 100,000 households.
“This investment in the ARM-Harith Successor Infrastructure Equity Fund represents a significant step forward in our collective effort to build sustainable infrastructure across Africa.
The partnership with ARM-Harith, coupled with SEFA’s catalytic role, demonstrates the power of collaboration in mobilising private sector investment (including local currency) and achieving lasting positive impact for communities across the continent,” said Wale Shonibare, Director for Energy Financial Solutions at AfDB.
Aligning with Africa’s Development Goals
The partnership aligns with AfDB’s High Five priorities, including “Light up and Power Africa” and “Improve the Quality of Life for the People of Africa.”
It also supports the New Deal on Energy for Africa. Moreover, it supports the Climate Change and Green Growth Action Plan 2021-2025, and the Mission 300 initiative. These aims to provide electricity to 300 million Africans by 2030.
Rachel Moré-Oshodi, Managing Director and CEO of ARM-Harith, said, “We at ARM-Harith are privileged to partner with the African Development Bank on this strategic initiative.
This collaboration sets a new standard for innovation and impactful investing, aligning perfectly with our vision of a thriving and self-sufficient continent.
This crucial support is mobilising domestic capital for infrastructure development and exemplifies the significant impact of strategic partnerships in channelling resources toward sustainable development across Africa.”
AfDB’s investment also complements its Ten-Year Strategy 2024-2033. It supports SEFA’s goals of increasing private sector investment in renewable energy and infrastructure.
This collaboration showcases how innovative financing can drive progress in energy and infrastructure across West Africa.