The African Development Bank Group (AfDB) has announced a $10 million concessional equity investment in the ARM-Harith Successor Infrastructure Equity Fund. This strategic initiative is set to enhance access to reliable electricity, modern transportation infrastructure, and energy-efficient technologies in Nigeria and across the broader West Africa region.
Highlighting the significance of the investment, Wale Shonibare, AfDB’s Director for Energy Financial Solutions, remarked, “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 mobilizing private sector investment (including local currency) and achieving lasting positive impact for communities across the continent.”
The funding is being facilitated through the Sustainable Energy Fund for Africa (SEFA), a multi-donor Special Fund managed by the Bank. SEFA’s role is to provide catalytic financing to stimulate private sector investments in renewable energy and energy efficiency projects. The ARM-Harith fund aims to raise a total of $200 million, leveraging the Bank’s investment to attract additional capital from both local and international investors. Its primary focus will be on sustainable infrastructure and energy transition projects in West Africa, with Nigeria as a central target.
The ARM-Harith Successor Infrastructure Equity Fund, under the management of ARM-Harith Infrastructure Investments (ARMHII), is a pioneering effort to address the critical shortage of equity financing in the region’s infrastructure sector. Building on the success of ARMHII’s first fund, which received catalytic support from AfDB in 2015, this new fund employs an innovative structure to raise capital in both US dollars and Nigerian Naira. By doing so, it seeks to attract a diverse investor base, including local pension funds, thereby maximizing its impact.
The fund’s ambitious goals include:
- Adding 200 MW of renewable energy capacity.
- Reducing 800,000 tons of CO2 emissions.
- Creating 10,000 jobs.
- Improving energy access for 100,000 households.
These initiatives are expected to generate substantial environmental, economic, and social benefits, reinforcing the region’s sustainable development agenda.
Rachel Moré-Oshodi, Managing Director and CEO of ARM-Harith, expressed optimism about the partnership, stating, “We at ARM-Harith are privileged to partner with the African Development Bank on this strategic initiative.” She added, “By mobilizing domestic capital for infrastructure development, this collaboration highlights the transformative power of strategic alliances in driving sustainable progress across Africa.”
The investment aligns with AfDB’s High Five priorities, particularly its goals to Light up and Power Africa, Industrialise Africa, and Improve the Quality of Life for the People of Africa. Furthermore, it supports objectives outlined in the Bank’s New Deal on Energy for Africa and the Climate Change and Green Growth Action Plan 2021-2025. Notably, the initiative also contributes to the M300 (Mission 300) goal of delivering electricity to 300 million Africans by 2030.
Main Image: ARM-Harith
