Italy is financing the ecological transition in Africa. Its development finance company Cassa Depositi e Prestiti (CDP) is approving a €100 million loan to the Africa Finance Corporation (AFC), a pan-African multilateral development finance institution based in Lagos, Nigeria. This financing aims to support the development of green infrastructure in Africa.
AFC is counting on the CDP loan to facilitate investments in renewable energy, energy efficiency projects and climate resilient infrastructure. The financial institution is increasing investments in renewable energy, which is making a significant contribution to access to electricity in some countries, and enabling the energy transition in others.
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Recently, AFC partnered with Egypt’s Infinity Energy to acquire Lekela Power, an independent power producer (IPP) with a portfolio of 1 GW of wind assets, including five operational wind farms in South Africa (624 MW), one operational wind farm in Egypt (252 MW), one in Senegal (159 MW), and development opportunities in Ghana, Senegal and Egypt.
According to Samaila Zubairu, AFC’s Chief Executive Officer, “Access to financing from highly rated institutions such as CDP helps us continue our commitment to invest in projects that simultaneously combat climate change and develop the critical infrastructure needed for Africa’s economic growth, while offering reliable and competitive returns to investors.
With the loan to AFC, CDP joins other development finance institutions that are supporting Africa’s green transition in a context of diplomatic and economic influence wars. Japan plans to increase its investments in Africa, targeting key sectors such as energy, water and transport.
Jean Marie Takouleu