Lagos, Nigeria – The African Development Bank (AfDB) has approved a $10 million anchor investment in the ARM-Harith Successor Infrastructure Fund, marking a significant step towards expanding access to reliable energy, efficient transport systems, and sustainable infrastructure across West Africa, with a strong emphasis on Nigeria.
AfricaHeadline Reports Team
editorial@africaheadline.com
This investment, drawn from the Sustainable Energy Fund for Africa (SEFA), is designed to unlock additional funding from both local and international sources. The fund, managed by ARM-Harith Infrastructure Investments Limited (ARMHIIL), aims to raise $200 million to accelerate sustainable infrastructure projects and energy transition initiatives in the region. SEFA, a multi-donor facility managed by the AfDB, focuses on unlocking private sector investment in renewable energy and energy efficiency.
The ARM-Harith Successor Infrastructure Fund addresses a critical shortfall in equity financing for infrastructure projects in West Africa. Using a dual-currency approach—offering investments in both US dollars and Nigerian naira—the fund seeks to attract a diverse range of investors, including domestic pension funds. This innovative structure builds on the success of ARM-Harith’s inaugural infrastructure fund, which received similar catalytic backing from the AfDB in 2015.
Wale Shonibare, Director of Energy Financial Solutions at the AfDB, highlighted the pivotal role of partnerships in driving sustainable development:
“This investment in the ARM-Harith Successor Infrastructure Fund is a testament to the power of collaboration in mobilising private sector capital to address Africa’s infrastructure challenges. By leveraging SEFA’s catalytic funding, we are not only enabling local currency investments but also creating lasting impacts for communities across the continent.”
Rachel Moré-Oshodi, CEO of ARM-Harith, echoed the sentiment, calling the initiative a “blueprint for innovation and impact investing”:
“Partnering with the African Development Bank underscores our shared vision of a self-reliant and prosperous Africa. This collaboration sets a new benchmark for mobilising domestic capital and exemplifies the transformative power of strategic partnerships in driving sustainable development.”
The initiative is directly aligned with the AfDB’s High 5 priorities: Light Up and Power Africa, Industrialise Africa, and Improve the Quality of Life for the People of Africa. It also supports the Bank’s New Deal on Energy for Africa and its 2021–2025 Climate Change and Green Growth Action Plan, as well as the ambitious Mission 300 Initiative, which seeks to bring electricity to 300 million Africans by 2030.
This investment exemplifies the Bank’s broader commitment to fostering private sector engagement, as outlined in its 2024–2033 Ten-Year Strategy, which prioritises renewable energy projects in emerging markets. SEFA’s role as a catalyst in this context underscores the importance of blending innovation with impact to address Africa’s most pressing infrastructure gaps.
As Africa grapples with an urgent need for infrastructure, initiatives like the ARM-Harith Successor Infrastructure Fundare critical in bridging funding gaps and fostering inclusive growth. With its focus on green energy, innovation, and scalable impact, this investment positions West Africa as a leader in sustainable development while setting a precedent for future projects across the continent.
