ADB and TDB join forces to deploy clean technologies in Africa

The African Development Bank Group has announced a follow-up equity investment of USD 15 million in the Trade and Development Bank Group’s (TDB Group) pioneering Class C Green+ shares to support clean technology and low-carbon projects in its member states.

The new capital, to be sourced from the Clean Technology Fund (CTF), will also support the establishment of a project preparation facility to boost investment in clean technologies.

The CTF, part of the Climate Investment Funds, provides resources to developing countries to scale up low-carbon technologies with significant potential for long-term greenhouse gas emissions savings.

Trade and Development Bank Group launched the unique thematic equity instruments just over a year ago during COP27.

These investments will support TDB Group’s efforts to advance climate action and the Sustainable Development Goals (SDGs) in its member states, driving considerable long-term greenhouse gas emissions savings.

“We are delighted to receive this investment into our risk capital by CTF through our strategic partner, the African Development Bank. This will hugely support our efforts for a clean environment,” Admassu Tadesse, TDB Group President and Managing Director, said.

“The new equity supports TDB’s green growth and climate action agenda and our drive to assist member states to achieve their Nationally Determined Contributions. We value the ADB’s pioneering role, which has generated much interest from other investors and catalyzed this investment, which endeavours to bring about impact and attractive financial returns.” Tadesse added.

Dr. Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth, commended TDB for the highly innovative class of shares with all capital raised through strategic partners.

“This structure has a high replicability potential as it optimizes the use of limited concessional funding and contributes to leveraging substantial resources from the private sector, we hope that the involvement of CTF will be instrumental in crowding-in the participation of additional investors to unlock the project,” Kariuki noted.

According to Mary Kamari, TDB Group Corporate Affairs and Investor Relations Executive, while much more capital is needed to support climate action in Africa, there are still constraints in the availability of bankable projects, with many projects failing at feasibility and business-planning stages.

TDB’s Class C Green+ shares build on the success of Class B shares launched a decade ago to attract institutional investors – pension funds, insurance companies, sovereign wealth funds, development finance institutions and others into TDB’s equity capital.