Rabat – ACWA Power and the African Development Bank (AfDB) have formalized a framework agreement to help fast-track large-scale projects related to the energy and water sectors in Africa, sustainably.
The two parties signed this agreement on the sidelines of the Africa Investment Forum in Rabat yesterday. The deal is a milestone in leveraging funds for two extremely pressing issues on the African continent: Africa’s need for electricity and its need for water.
Its new framework will bring together ACWA Power and AfDB to explore and finance projects for renewable energy sources, grid-connected power generation, and water desalination.
The new partnership aims to mobilize up to $5 billion between 2025 and 2030 due to the growing need for energy transition and water security issues in Africa.
ACWA Power, known globally for being the largest private producer of desalinated water and for its prominence in the area of renewable energy and green hydrogen, considers the continent of Africa a significant future market.
It has significant experience delivering complex infrastructure projects in emerging markets, and the new framework is designed to shorten development timelines by aligning technical expertise with the AfDB’s financing capacity and regional knowledge.
The partnership will also particularly focus on Sub-Saharan Africa, which has the greatest gaps in energy access among other regions. The partnership aligns closely with “Mission 300,” a joint program by the AfDB and World Bank Group.
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This program seeks to offer energy access to 300 million citizens of Sub-Saharan Africa by the year 2030 by providing electricity to their populations through this project that will support the connection of power to the grid and also support renewable energy sources.
Apart from financial assistance, the new agreement takes into account social development and environmental issues.
Both parties have agreed to ensure projects they support comply with strong processes of sustainability, social equity, and environmental conservation, signaling an industry trend of more impact-invested finances among development financiers.
The AfDB argues that the framework supports the bank’s position as an investment catalyst in the private sector in the development of infrastructure, as well as the leveraging of the project development capacities of ACWA Power.
The deal is an opportunity for ACWA Power to expand its reach through the water and power markets in Africa with reduced risk.
The sealing of this cooperation framework reflects the momentum building on the provision of large-scale and bankable solutions to meet the African energy and water needs.
This partnership will leverage project experience from around the globe and financial acumen from the region to drive progress toward achieving energy security and a green and growing Africa.
