On November 17, 2022, the African Development Bank Group (AfDB) approved a $20 million equity investment in Evolution Fund III, a pan-African clean and sustainable energy private equity fund with a 10-year goal of mobilizing $400 million into renewable energy and resource-efficiency assets across Sub-Saharan Africa.
The project, tagged “EVIII,” aims to broaden geographic and technological scope to incorporate North Africa and several SSA countries, as well as decentralize energy business models as the key to climate mitigation and energy transition.
The AfDB’s assistance is expected to 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 records of Evolution Funds I and II, which generated approximately 1,309 jobs and boasted a 22 percent female participation rate.
The Vice President, African Development Bank’s Power, Energy, Climate Change, and Green Growth Complex, Kevin Kariuki, assured, “The Bank is committed to boosting its portfolio of renewable energy projects and encouraging private investment in renewable and efficient energy solutions.”
Kariuki added that “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.”
He revealed 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 the African continent.
The Director, Energy Financial Solutions, Policy & Regulations of AfDB, Wale Shonibare, admonished, “The bank’s support for a private equity fund focused on promoting renewable energy in Africa will assist regional member countries to achieve their nationally determined contributions and Paris Agreement obligations.”
The African Development Bank, which acts as the mandated lead arranger (MLA) and coordinating bank for the ZAR 11.6 billion total investment, aims to support renewable energy projects. The MLA committed ZAR 2.306 billion to the transaction in South Africa’s largest solar power project, which will start operating in February 2022.
