Masdar leads UAE investments in Africa's Green Growth
Masdar leads UAE investments in Africa's Green Growth
In a plan to accelerate the adoption of clean energy in Africa, UAE renewable energy giant Masdar has forged a strategic partnership on the continent. Masdar has partnered with Africa50, the pan-African infrastructure investment platform to identify, fast-track, and scale clean energy projects across the continent.
By combining Masdar's technical expertise and experience in the emerging markets with Africa50's project development track record, this alliance will speed up growth in the clean energy sector. The partnership will bridge the infrastructure funding gap, rallying both public and private finances to unlock Africa's immense clean energy potential.
Masdar in Africa
The initiative will bring together a coalition of public, private, and development capital from UAE institutions, including Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar, and AMEA Power.
The deal was signed by Mohamed Jameel Al Ramahi, CEO of Masdar, and Alain Ebobissé, CEO of Africa50 during the Africa Climate Summit in Nairobi.
Masdar is one of the world's largest clean energy companies. The firm runs one of the largest solar plants in Mauritania. Under a joing venture with Infinity Power, Masdar played an important role in the establishing Senegal's first utility-scale wind farm. It has also been involved in the development of Africa's largest wind farm in Egypt.
During the summit, Masdar pledged $2 billion in equity as part of the UAE finance initiative. The initiative was championed by UAE’s Minister of Industry & Advanced Technology Dr. Sultan Al Jaber, who is also the COP 28 President.
Masdar committed to channel $10 billion towards clean energy finance. Out of this, $2 billion will be in equity while $8 billion will come from project finance.
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Clean energy capacity in Africa
This investment will help in achieving 10 gigawatts of clean energy capacity in Africa by 2030 while simultaneously targeting green hydrogen production of 1 million tonnes per annum by the same year.
The move will increase Africa's renewable energy capacity and positively impact millions of lives across the continent while helping countries tackle the climate crisis.
In addition, the two firms are exploring opportunities to collaborate on the implementation of the Alliance for Green Infrastructure in Africa (AGIA), launched at the COP27 last year. The initiative is backed by the African Union Commission and the African Development Bank and aims to accelerate Africa's transition to a greener, more sustainable future.
Overall, Masdar has presence in over 40 countries and investing in a portfolio of renewable energy projects with a capacity of 20 gigawatts since 2006. Africa50 on the other hand is an infrastructure investment platform that contributes to Africa's growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact.
