Addis Ababa - The African Development Bank (AfDB) on Friday, said it had approved an equity investment of $25 million into the continent’s renewable Energy Fund (AREF) to fast track energy development.
In a statement in Addis Ababa and made available to the News Agency of Nigeria (NAN), the bank said that the approval for the investment was given by the bank’s Board of Directors on Wednesday.
"The AfDB approved a 25 million dollars equity investment in the Africa Renewable Energy Fund (AREF) and acknowledged the mobilisation of 39.5 million dollars from other partners.
"The Energy Fund is a private equity fund that will invest in small to medium-sized renewable energy projects in Sub-Saharan Africa, excluding South Africa, with a targeted fund size of $150 million to $200 million," it stated.
The bank also said that Africa needed to adapt to climate change and embark on low-carbon growth paths, adding that estimated cost of such adaptation ranged from 22 billion dollars to 31 billion dollars per annum between now and 2015.
According to the bank, however, only few pan-African infrastructure funds had scope to make clean technology investments.
It noted that there was a dearth of funds that were dedicated to renewable energy investment or had an investment focus targeting Sub-Saharan Africa.
The bank said that AREF would have a significant impact in facilitating greater private capital inflows into clean energy technology industries across Africa.