The Board of Directors of the African Development Bank, as part of its wider commission under the New Deal on Energy for Africa, on December 15, 2017, approved an investment of US $20 million in the Evolution II Fund − a Pan-African clean and sustainable energy private equity fund.
The proposed participation in the fund, according to a statement from the bank, is demonstrating the bank’s commitment to boost renewable energy and efficiency in Africa. The investment of the bank in Evolution II Fund reveals the high 5 development priorities of the bank, especially the agenda to “Light up and Power Africa”.
Over a period of a decade, the fund is expected to invest an estimated US $250 million in different renewable energy and resource-efficiency assets across sub-Saharan Africa.
Inspired Evolution Investment Management, the fund manager, fetches experience and knowledge to the project from its previous fund, the fund which focused on the Southern African Development Community (SADC) region. It provided 12 renewable energy projects with a total generation capacity of 925 megawatts (MW).
In collaboration with the African Development Bank and other investors, Evolution II will provide growth capital and infrastructure equity to reinforce low-cost, low-carbon, small-to-medium-sized, clean and sustainable energy generation capacity.
The fund will also contribute to green and sustainable growth by creating 2,750 jobs and developing the track record of the Evolution One Fund. Evolution One Fund created 1,495 jobs, out of which 20% were women, and generated 838 MW of wind energy and 87MW Solar PV energy. It also achieved 1,190,469 of carbon dioxide (CO2) emission savings annually.