The African Development Bank Group (AfDB) board of directors has approved an equity investment of US$20 million in Evolution Fund III.
Evolution Fund III is a pan-African private equity trust dedicated to clean and sustainable energy in the wake of heightened global advocacy on tackling climate change.
An equity investment is money that is invested in a company by purchasing shares of that company in the stock market.
This fund seeks to mobilize about US$400 million into renewable energy and resource-efficiency assets across sub-Saharan Africa over a decade.
Inspired Evolution Investment Management is a well-established fund manager with nearly two decades of experience and a specialty in the investment advisory business dedicated to clean energy infrastructure-type development and project finance investments, as well as energy and resource efficiency growth investments.
More than US$310 million has been invested in renewable energy projects in African countries by the company.
Through its predecessor funds, the fund manager has given grants to 21 renewable energy projects with a total generation capacity of 2 GW.
EVIII intends to broaden its geographical and technological scope to include North Africa as well as several sub-Saharan African countries, and to decentralise energy business models as a critical component of climate mitigation and energy transition.
Through the Bank’s support, 2,162 MW of renewable power generation capacity will be installed, 1.8 million tonnes of CO2 will be reduced, and green and sustainable growth will be achieved across Africa by creating 2,480 full-time jobs, adding to the track record of Evolution Funds I and II, which created 1,309 jobs, with 22% being women.
Vice President Kevin Kariuki of the AfDB’s Power, Energy, Climate Change, and Green Growth Complex intimated that, in addition to boosting its renewable energy portfolio, the bank intends to boost private investment in renewable and efficient energy sources.
According to him, “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.”
The Bank’s investment in Evolution Fund III aligns with its High Five objectives: quality, responsibility, mutuality, efficiency, and freedom, particularly “Light Up and Power Africa” under its New Deal on Energy for Africa.
Director of Energy Financial Solutions, Policy & Regulations, Wale Shonibare, believes that developing a private equity fund for renewable energy in Africa will assist regional member countries in meeting their Paris Agreement and Nationally Determined Contributions obligations.
Co-Managing Partner at Inspired Evolution, Christopher Clarke, said, “AfDB has been a consistent supporter of Inspired Evolution since 2010, and this third capital commitment evidences our trusted partnership that has been established in the delivery of the AfDB climate goals for Africa.”
Adding to this, Wayne Keast, Co-Managing Partner at Inspired Evolution, mentioned that, “The AfDB’s investment validates our track record and sophisticated investment management approach to expediting Africa’s clean energy transition.”
Source: The Independent Ghana