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The African Development Bank Group’s Board of Directors has approved a $20 million equity investment in Evolution Fund III, a pan-African clean and sustainable energy private equity fund that will invest $400 million over 10 years in renewable energy and resource-efficient assets in sub-Saharan Africa.

With more than 15 years of expertise and a track record of putting more than $310 million into renewable energy projects in African nations, Inspired Evolution Investment Management is a reputable fund manager. The fund manager has produced 21 renewable energy projects totaling 2 GW in generation capacity through its previous funds.

EVIII aims to broaden geographic and technological scope to incorporate North Africa as well as several SSA countries and decentralized energy business models as the key to climate mitigation and energy transition.

The Bank’s support will contribute to an additional 2,162 MW of installed renewable power generation capacity, 1.8 million tons of CO2 emission savings, and green and sustainable growth across Africa by creating 2,480 full-time jobs, building on the track record of Evolution Funds I and II, which generated about 1,309 jobs, out of which 22% were women.

Vice President Kevin Kariuki of the African Development Bank’s Power, Energy, Climate Change, and Green Growth Complex said the bank is committed to boosting its portfolio of renewable energy projects and encouraging private investment in renewable and efficient energy solutions.

“The Evolution Fund III is well placed to invest much-needed capital in long-term, low-carbon, and climate-resilient development pathways towards achieving a just, net-zero future for African countries,” Kariuki said. The Bank’s investment in Evolution Fund III aligns with its High Five objectives, particularly “Light Up and Power Africa” under its New Deal on Energy for Africa.
 
The Bank’s support for a private equity fund focused on promoting renewable energy in Africa, according to Wale Shonibare, Director of Energy Financial Solutions, Policy & Regulations, will help regional member countries meet their Nationally Determined Contributions and Paris Agreement obligations.
 
With a focus on decarbonization, decentralization, and digitalization as the primary strategies for climate mitigation and the energy transition, the African Development Bank and its partners in the new fund will continue to provide growth capital and infrastructure equity to support renewable and sustainable energy.