The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group Company (PIDG), will underwrite US$50m of Zambia’s first US$53.5m green bond.
Why is this important: This is Zambia's first green bond and key solar infrastructure initiative. It will support the country's diversification of its energy sector considering its huge renewable energy potential. The funding will also accelerate the country's emerging solar energy sector and increase grid connections to rural areas.
The bottom line: There is a green energy transition movement happening across Africa, where the rise of solar energy solutions leveraging the abundant temperature is adding to the energy generation, transmission and distribution needed to drive economic growth. Investors like EAIF seem to be at the forefront of funding such defining projects, as they did recently with the IFC through their committed investment in West Africa’s first-ever $96 million social asset-backed security.