By Opondo Henry
Abu Dhabi Future Energy Company PJSC – Masdar has announced a partnership with Africa50, the pan-African infrastructure investment platform to identify, accelerate and scale clean energy projects across the continent.
The UAE’s clean energy champion has signed a memorandum of understanding (MoU) with Africa50 that will aim to close the infrastructure financing gap and mobilize public and private financing.
Masdar brings its technical expertise and extensive experience in emerging markets, while Africa50 brings its experience in developing projects in Africa, which, combined, can help unlock Africa’s enormous clean energy potential.
Signed by Mohamed Jameel Al Ramahi, Managing Director of Masdar and Alain Ebobissé, Managing Director of Africa50 on the sidelines of the African Climate Summit, the first of four global climate summits preceding COP28, the agreement will see both parties working in collaboration to catalyze sustainable development of the clean energy sector in Africa.
Masdar, one of the world’s largest clean energy companies and Africa’s largest, has committed $2 billion in equity capital as part of the UAE’s financial initiative, announced at the Africa Summit on climate by HE Dr Sultan Al Jaber, President of Masdar and COP28. President-elect. The initiative brings together public, private and development capital from UAE institutions including Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar and AMEA Power. Africa50 is also expected to join this initiative as a strategic partner.
HE Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and President-designate of COP28, said: “We welcome this important partnership with Africa50 which brings a key stakeholder to the table for an inclusive, equitable and just energy transition. . We look forward to working with Africa for Africa. The world must continue to close the climate finance gap for clean energy investments in the Global South, which are disproportionately affected by climate change. We need the public and private sectors to work together to ensure access to clean energy across Africa – a key mission and objective of Africa50. This can be accelerated in countries with strong regulatory frameworks, clear transition strategies and a real commitment to developing the network structure.
Mohamed Jameel Al Ramahi, CEO of Masdar, said: “As the largest renewable energy company in Africa, through our joint venture with Infinity Power, it is fitting that Masdar, together with Africa50, is taking this bold step forward which will unlock much-needed solutions. climate financing for the energy transition. This is a key strategic market for Masdar and we are proud of our long-term partnerships and projects in Africa. Our portfolio today includes Senegal’s first large-scale wind farm, as part of Masdar’s Infinity Power Holding (IPH) platform, Mauritania’s first and largest solar photovoltaic project, as well as the development of the largest Africa wind farm in Egypt with IPH and other partners. With Africa50, Masdar looks forward to unlocking the enormous clean energy potential across the continent,”
Masdar has committed a total of $10 billion in clean energy financing, of which $2 billion will be generated through equity, and an additional $8 billion will be raised through project financing. This historic investment will aim to provide 10 GW of clean energy capacity in Africa by 2030.
Alain Ebobissé, Managing Director of Africa50, said: “Partnerships are essential to our goal of expanding and accelerating the establishment of bankable and sustainable infrastructure across Africa. We are happy to partner with Masdar through this signing. We believe this step will become one of many, as part of a journey to drive transformative projects that support Africa’s path to carbon neutrality and help build cleaner economies for future generations. Africa50 and Masdar will also explore opportunities to collaborate on the implementation of the Africa Green Infrastructure Alliance (AGIA), launched at COP27 by the African Union Commission, the African Development Bank and Africa50.
The UAE investment initiative is part of Etihad 7, a development platform launched by the UAE during Abu Dhabi Sustainable Development Week 2022 and led by the Ministry of Foreign Affairs (MoFA). Announced in 2022, Etihad 7 aims to provide clean electricity to 100 million people on the African continent by 2035.
Established in 2006, Masdar is the UAE’s clean energy powerhouse. It is active in more than 40 countries and has invested in a portfolio of renewable energy projects with a combined capacity of approximately 20 gigawatts (GW). Masdar aims to increase this production to at least 100 GW by 2030. The company is also targeting green hydrogen production of 1 million tonnes per year by the same year.