AFC signs agreement for direct funding from Green Climate Fund
The AFC has invested approximately US$4 billion in projects across 28 countries and in a wide range of sectors including power, telecommunications, transport and logistics, natural resources and heavy industries.
Africa Finance Corporation has signed an Accreditation Master Agreement with the Green Climate Fund in Seoul, South Korea. Following the signing of the AMA, AFC will have access to direct funding from GCF, rather than through intermediaries or third parties. Over time, the GCF is expected to become the main multilateral financing mechanism to support climate action in developing countries.
Established in 2010 by the 194 countries founder members of the United National Framework Convention on Climate Change (UNFCCC), the GCF launched its initial resource mobilization in 2014, which rapidly gathered pledges worth US$10.3 billion.
AFC intends to leverage this partnership by mobilizing GCF's capital to further its low carbon emission investments in 4 of its 5 focus sectors: power, transport, heavy industries and telecoms. To date, AFC has demonstrated a longstanding commitment to financing green energy in Africa through its early investment in the 26MW award-winning Cabeolica wind farm in Cape Verde, the first commercial wind farm in sub-Saharan Africa. AFC is also currently developing more than 500MW of renewable power projects across the continent.
"The consequences of climate change impact may have serious implications for the successful development of Africa's economy. AFC is therefore highly committed to this partnership with GFC. Not only does AFC and the GCF have shared goals, we also have shared values," said Oliver Andrews, Chief Investment Officer of AFC.
On his part, Pa Ousman Jarju, Director of GCF's Country Programming Division, said on the announcement: "AFC is well placed to support African entrepreneurs and explore the vast potential for economic growth across the continent in ways that do not harm the global environment."
AFC says it is committed to proactively financing and managing the development of key infrastructure projects which will have positive impacts on the lives of Africans all over the continent. To date the Corporation has invested approximately US$4 billion in projects across 28 countries and in a wide range of sectors including power, telecommunications, transport and logistics, natural resources and heavy industries.
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