Grace Ashiru
The African Development Bank Group has approved a $10 million concessional equity investment in the ARM-Harith Successor Infrastructure Equity Fund. This initiative aims to expand access to reliable electricity, modern transportation infrastructure, and energy-efficient technologies in Nigeria and the broader West Africa region.
Wale Shonibare, the African Development Bank’s Director for Energy Financial Solutions, emphasized the importance of this investment, stating, “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 investment, which will come from the Bank-managed Sustainable Energy Fund for Africa (SEFA), is expected to catalyze additional funding from both local and international investors. ARM-Harith is targeting a total capital raise of $200 million to support sustainable infrastructure and energy transition projects across West Africa, with a particular focus on Nigeria.
The Sustainable Energy Fund for Africa (SEFA) is a multi-donor Special Fund designed to provide catalytic financing that stimulates private sector investment in renewable energy and energy efficiency projects.
The ARM-Harith Successor Infrastructure Equity Fund, managed by ARM-Harith Infrastructure Investments (ARMHII), represents a groundbreaking initiative aimed at addressing the critical shortage of equity financing within the region’s infrastructure sector.
With its innovative structure, the fund will raise capital in both US dollars and Nigerian Naira, attracting a diverse range of investors, including local pension funds, to maximize its overall impact. The ARM-Harith Successor Infrastructure Equity Fund builds upon the successful investment strategy and established track record of ARMHII’s inaugural fund, which received catalytic support from the Bank in 2015.
Focused on sustainable infrastructure and energy transition projects, the Fund prioritizes innovation and pioneering developments. Its expected outcomes include the addition of 200 MW of renewable energy capacity, the reduction of 800,000 tons of CO2 emissions, the creation of 10,000 jobs, and improved energy access for 100,000 households. These projects are poised to deliver significant environmental, economic, and social benefits.
Rachel Moré-Oshodi, Managing Director and CEO of ARM-Harith, stated, “We at ARM-Harith are privileged to partner with the African Development Bank on this strategic initiative.”
This partnership establishes a new benchmark for innovation and impactful investing, perfectly aligning with our vision of fostering a thriving and self-sufficient continent. By mobilizing domestic capital for infrastructure development, it highlights the transformative power of strategic collaborations in directing resources toward sustainable development across Africa.
The Bank’s investment in ARM-Harith strongly aligns with its High Five priorities, particularly the goals to Light up and Power Africa, Industrialise Africa, and Improve the Quality of Life for the People of Africa. It also supports key objectives under the Bank’s New Deal on Energy for Africa and the Climate Change and Green Growth Action Plan 2021-2025. Additionally, it contributes to the M300 initiative (Mission 300), which seeks to deliver electricity to 300 million Africans by 2030.
The Fund’s emphasis on private investment aligns with the Bank’s recently approved Ten-Year Strategy 2024-2033, as well as SEFA’s mission to drive private sector investment in emerging renewable energy markets.
