The African Development Bank Group (AfDB) has approved a $10 million concessional equity investment in the ARM-Harith Successor Infrastructure Equity Fund, a pioneering initiative aimed at bolstering sustainable infrastructure development and energy transition projects in Nigeria and the broader West African region.

The investment, sourced from the AfDB-managed Sustainable Energy Fund for Africa (SEFA), will serve as a catalyst for mobilizing additional capital from local and international investors. ARM-Harith Infrastructure Investments Limited (ARMHIIL), the fund manager, is targeting a $200 million total fundraise to finance projects that address the region’s critical need for reliable electricity, modern transportation infrastructure, and energy-efficient technologies, particularly in Nigeria, Ghana and across West Africa.

The ARM-Harith Successor Infrastructure Equity Fund seeks to address a long-standing shortage of equity financing in West Africa’s infrastructure sector. Leveraging a dual-currency structure, the Fund will raise capital in both US dollars and Nigerian Naira, enabling it to attract a diverse pool of investors, including local pension funds.

This model builds on the success of ARMHIIL’s inaugural fund, which also benefited from AfDB’s catalytic investment in 2015. By focusing on innovation and first-of-a-kind developments, the successor fund is expected to unlock significant environmental, economic, and social benefits.

Key projected outcomes include:

• Adding 200 MW of renewable energy capacity.
• Reducing 800,000 tons of CO2 emissions.
• Creating 10,000 jobs.
• Improving energy access for 100,000 households.

Wale Shonibare, AfDB’s Director for Energy Financial Solutions, highlighted the strategic importance of the investment. “This represents a significant step in building sustainable infrastructure across Africa. The partnership with ARM-Harith demonstrates the power of collaboration in mobilizing private sector investment, including local currency, to achieve lasting impact for communities.”

The ARM-Harith Fund’s investment strategy aligns with AfDB’s High Five Priorities, particularly its goals to “Light Up and Power Africa,” “Industrialize Africa,” and “Improve the Quality of Life for the People of Africa.” It also supports the Bank’s New Deal on Energy for Africa, the Climate Change and Green Growth Action Plan (2021–2025), and the M300 initiative, which aims to deliver electricity to 300 million Africans by 2030.

Rachel Moré-Oshodi, Managing Director and CEO of ARM-Harith, underscored the significance of AfDB’s involvement. “This collaboration sets a new standard for innovation and impactful investing. By mobilizing domestic capital for infrastructure development, it exemplifies the transformative potential of strategic partnerships in driving sustainable development across Africa.”

SEFA, a multi-donor special fund administered by AfDB, plays a pivotal role in advancing renewable energy and energy efficiency projects by unlocking private sector investments in emerging markets. The ARM-Harith Fund’s focus on private capital aligns with AfDB’s recently approved Ten-Year Strategy (2024–2033) and SEFA’s mission to drive private sector engagement in Africa’s renewable energy markets.

By bridging the infrastructure financing gap, attracting local and international investors, and prioritizing sustainable energy projects, the ARM-Harith Successor Infrastructure Equity Fund represents a transformative step toward addressing West Africa’s infrastructure challenges. With AfDB’s support, the Fund is poised to deliver long-term benefits to communities while contributing to the continent’s energy transition and climate resilience goals.

This investment underscores AfDB’s commitment to fostering sustainable development through innovative financing solutions, leveraging partnerships, and mobilizing private sector resources to drive impactful change in Africa.