The African Development Bank (AfDB) is championing innovative financing tools such as asset recycling and green bonds to close Africa’s infrastructure gap and accelerate sustainable development. Speaking at a high-level forum, AfDB officials emphasized the need to unlock private capital by repurposing existing public assets and leveraging environmentally focused investments. These strategies aim to boost infrastructure resilience, drive economic growth, and support Africa’s green transition.
Asset Recycling: Monetizing to Modernize
Dr. Adesina said, Africa50, a private equity platform, has pioneered the asset recycling model. Under this, governments divest brownfield assets like toll roads or bridges to private operators, recouping funds to reinvest in critical infrastructure.
He said the Senegambia Bridge in Gambia was the first to be repurposed this way, funded by the AfDB’s $104 million investment and then transferred in a manner that recovered costs for the government.
He also added that, Africa50 has accumulated $8 billion in assets through this model over the past eight years, signaling its growing appeal.
However, panelists Alain Ebobissé (Africa50), Armando Manuel (Angola Sovereign Wealth Fund), and Brook Taye (Ethiopia Investment Holdings) joined CNN’s Richard Quest to discuss its potential for expanding private participation in asset management during panel discussions.
Green Bonds: Financing Africa’s Environmental Future
The AfDB President said Africa represents a minuscule fraction less than 1% of the $2.9 trillion global green bond market, despite having immense need and opportunity.
Hence, AfDB’s new Alliance for Green Infrastructure in Africa (AGIA) seeks to channel $10 billion toward clean energy, sustainable transport, and climate-resilient agriculture, along with a $500 million project preparation fund.
Dr. Adesina emphasizing the urgency said, Africa should be positioned to issue green bonds and finance vital green infrastructure.
He noted that global climate funds must recognize Africa’s potential as a climate investment frontier.
Liberating Guarantees: Consolidating Risk Mitigation
Detailing underreported risk barriers, Dr. Adesina announced the formation of the Africa Risk Mitigation Agency (ARMA), saying, this will centralize guarantee instruments, covering equity, climate, refinancing, and political exposure across African markets. “With ARMA, lenders can invest in African projects with greater confidence”, he added.
Blob of Support for Lobito Corridor
As an example of strategic investment, AfDB reaffirmed funding for the Lobito Corridor, a transportation and logistics lifeline connecting Zambia and the DRC via Angola.
Furthermore, the Bank is channeling $500 million in soft loans plus an additional $1 billion in associated investments over five years to build transport linkages, energy networks, and agricultural value chains, demonstrating how corridor finance can ease trade barriers and industrialize economies.
Africa’s Time Is Now
With U.S. diplomats pledging to help U.S. investors “act on the data, not perceptions,” and African leaders rallying under Agenda 2063, the summit reframed Africa as fertile ground for forward-looking capital.
Dr. Adesina said “African infrastructure requires more private-sector capital, in local currency, backed by risk guarantees.”
Through innovations like asset recycling, green bonds, and centralized risk mitigation, Africa can move beyond aid dependency to sustainable, sovereign-led, and scalable development.
Last Updated on June 27, 2025 by Senel Media
