Sierra Leone has been selected to benefit from the African Development Bank’s four hundred million United States dollars Infrastructure Fund.
The Fund with initial investment of $20 million, aims to leverage up to $400 million from private commercial and institutional investors to support industrial and infrastructure project, across Africa.
The allocation funds will be directed towards various projects, with a particular emphasis and digital infrastructure renewable energies, for energy transition, logistics and transportation, waste recovery and heating, ventilation and air conditioning all geared towards promoting energy efficiency.
The Fund’s investment strategy is consistent with the African Development Bank’s Ten-Year Strategy, which is focused on green and inclusive growth. It is also consistent with the Bank’s priority areas (its “High 5s”.
Furthermore, the project is aligned with the African Development Bank’s Strategy on climate change and green growth for the period 2021–2030. It is expected to help improve the implementation of nationally determined contributions (link is external) in target countries.
This will translate into better climate funding flows in these countries and contribute to achieving the objectives set out in the Paris Agreement on climate change.
The African Development Bank is committed to helping mobilize private capital to fund infrastructure in Africa. It estimates that there is an annual $100 billion funding gap.
Abdu Mukhtar, Director of the Industrial and Trade Development Department at the African Development Bank, said: “The Bank’s operations help capital investment funds like the Pembani Remgro Infrastructure Managers to mobilise investments aimed at industrial and infrastructure projects on the (African) continent. These (operations) contribute to economic growth and job creation, improving business efficiency, mitigating the effects of climate change and improving levels of health and education.”
Wale Shonibare, Director of the African Development Bank’s Energy Financial Solutions, Policy and Regulation Department, said: “It is essential to cover the infrastructure gap to ensure economic prosperity and sustainable development in Africa.”
