Kenya and other African countries under the African Union Commission are set to benefit from $175 million (Sh26.8 billion) to build climate-resilient infrastructure across the continent.
The money was pledged to the Alliance for Green Infrastructure in Africa (Agia) at COP28 in Dubai.
The pledge was made by African and global institutions, together with the governments of Germany, France, and Japan, as well as philanthropies.
Agia was launched last year at COP27 in Sharm El Sheikh, Egypt, by the African Union Commission (AUC), the African Development Bank (AfDB), Africa50, and other partners.
The new pledges will also advance Agia towards its first close of $500 million (Sh76.6 billion) of early-stage project preparation and development blended capital. It works to unlock up to $10 billion in private capital for green infrastructure projects and to support global action to accelerate Africa's just and equitable transition to Net-Zero.
Among the signatories of the memorandum of intent were representatives of the AfDB, Africa50, France, Germany, Japan, the Arab Bank for Economic Development in Africa (Badea), Banque Ouest-Africaine de Developpement (Boad), Proparco, and the Three Cairns Group.
Comoros President Azali Assoumani, his Madagascar counterpart Andry Rajoelina, and AUC Chairperson Moussa Faki Mahamat witnessed the signing ceremony.
AfDB President Dr Akinwumi Adesina said Africa needs private sector financing to tackle climate change and fill the continent's huge infrastructure gap in a sustainable and climate-resilient manner.
"By working together and pooling our resources through Agia, we are committed to accelerating these efforts. The Bank Group plans to contribute up to $40 million ($6.1 billion), pending approval from its board of directors," Adesina said.
Svenja Schulze, Germany's Minister for Economic Cooperation and Development, said the country is pleased to join the launch of Agia in Africa.
"We congratulate the AfDB on this important Africa-led initiative and want to highlight AGIA's commitment to the 1.5 C target and its dedication to accelerating net zero emissions in Africa," she said.
She added that the signing of the memorandum marks an important step toward Germany's shared goal of a just and equitable green transition in Africa.
"Supporting the commitment towards green infrastructure, we are planning to contribute up to EUR26 million (Sh4.3 billion) to Agia starting in 2024," she said.
Tomoyoshi Yahagi, Japan's Deputy Vice-Minister of Finance, called on other donors to contribute to the initiative. "As part of the pledge made by Prime Minister Fumio Kishida yesterday, Japan will provide $10 million (Sh1.53 billion) to Agia to support Africa in undergoing a just and equitable transition to net zero and achieving the 1.5 C pathway," Yahagi said.
Emmanuel Moulin, Director General of the French Treasury, stated that by addressing the gap in funding for green infrastructure project preparation and development, AGIA will play an instrumental role in Africa's transition to net zero.
