VICTORIA ONU, ABUJA
PRESIDENT of the African Development Bank, Akinwumi Adesina, has said that climate-resilient infrastructure offers investment potential of between $130bn and $170bn for the African continent.
He also said that African energy transition presented a $100bn per year investment opportunity for the continent.
He said this at the European Union-Africa Green Investment Forum where he reminded global audiences of the continent’s vast opportunities for green growth.
The hybrid forum was convened by Portugal and the European Investment Bank to mobilise private and public capital towards the green transition in Africa.
The high-level event brought together leading government and business figures, international and development financial institutions, civil society and academia.
Adesina, during a video address, identified energy, agriculture and infrastructure as key areas of investment potential for a post-Covid-19 recovery in Africa.
With abundant solar, wind, hydro and geothermal energy resources, he said that Africa’s energy transition alone presents a $100bn per year investment opportunity, adding that agriculture potentially offered massive investments in climate-smart crops to build more resilient food systems.
While climate change is a huge challenge for Africa, Adesina urged investors to seize the opportunities it presents, which would be worth $3trillion by 2030.
He said the African Development Bank was in the vanguard of investment in climate adaptation, adding that over 70 per cent of the financing needed would come from the private sector to complement public investments.
He said, “We intend to power the entire Sahel of Africa via solar. That’s why the African Development Bank has launched the Desert to Power initiative, a $20bn initiative, to build 10,000 MW of solar power plants.
“This will become the largest solar zone in the world and provide electricity for 250 million people. Africa’s energy transition presents a $100bn per year investment opportunity.
“Enormous potential exists in agriculture. That’s because the size of the food and agribusiness market in Africa is estimated to reach $1trn by 2030.
“With 65 per cent of the world’s uncultivated arable being in Africa, it is clear that what Africa does with agriculture will determine the future of food in the world.
“That’s why the African Development Bank is investing massively in climate smart agriculture, to support the continent to adapt to climate change, and build more resilient food systems.
“The Bank’s Africa Climate Smart Agriculture is targeting 10 million farmers with climate smart agricultural technologies and practices. This will help to create 500,000 new green jobs and mobilise $1bn of climate funds.”
Adesina said Africa’s massive needs for infrastructure, from roads to rail, ports, airports, internet connectivity, water and sanitation, as well as urban housing needs, presented enormous opportunities for green investments.
He explained that the size of the infrastructure opportunities was worth between $130bn and 170bn annually.
The AfDB Boss said Africa’s future infrastructure needed to be greener and climate resilient, noting that the continent must shift away from simply building the cheapest infrastructure, to investing in life cycle financing.
