January 23 (Renewables Now) - The African Development Bank (AfDB) will make an equity investment of up to USD 25 million (EUR 22m) in a private equity fund for renewable energy projects across Sub-Saharan Africa.
The bank said on Tuesday that its board of directors has approved the above-mentioned investment in the USD-250-million ARCH Africa Renewable Power Fund (ARPF). This fund will support the development and construction of 10 to 15 greenfield renewable energy projects in the region with a combined capacity of about 533 MW. The beneficiaries will be both grid-connected and decentralised installations utilising wind, solar photovoltaic (PV), small to medium hydro, geothermal or biomass power technologies.
AfDB expects that its own involvement would attract further investments of between USD 60 million to USD 75 million in total from other parties, it said. The bank also anticipates that project construction and operation will lead to the creation of at least 272 full time jobs and 5,320 part time jobs.
ARPF is seen to reach its first close in early 2019. Its anchor investing entity is London-based ARCH Emerging Markets Partners Ltd.
(USD 1.0 = EUR 0.881)