The African Union Development Agency (AUDA-NEPAD) has launched a new investment vehicle aimed at unlocking financing for green infrastructure projects across Africa, with an initial capital target of about US $580M.
Known as the Africa Green Transition Public-Private Partnership Fund (AGTPF), the initiative was introduced during the Ministerial Segment of the African Union’s Specialised Technical Committee on Trade, Industry and Minerals (STC-TTIM) in Abidjan. The fund is expected to reach its first fundraising close during the Africa Business Forum 2026.
The AGTPF is designed to channel blended finance and institutional investment into renewable energy generation, electricity transmission, water-energy projects, industrial decarbonisation and climate-resilient infrastructure. By providing financing for investment-ready projects, the platform aims to help bridge the gap between project preparation and construction, where many African infrastructure initiatives struggle to secure funding.
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Luxembourg SICAV-RAIF
The fund has been established as a Luxembourg SICAV-RAIF investment vehicle, combining international governance standards with an African-led project development approach. In its first phase, it will seek to mobilise public, private and institutional capital to support projects that strengthen energy security, accelerate green industrialisation and promote sustainable economic growth across the continent.
AUDA-NEPAD Chief Executive Officer Nardos Bekele-Thomas said Africa has an extensive pipeline of green infrastructure projects but lacks sufficient investment platforms capable of transforming completed project designs into financed developments. She noted that the new fund is intended to fill that financing gap while remaining aligned with the African Union’s long-term development priorities.
The AGTPF will complement existing project preparation programmes, including the NEPAD Infrastructure Project Preparation Facility and the PIDA Industrialisation Project Preparation Facility. It also supports continental initiatives such as Agenda 2063, the Programme for Infrastructure Development in Africa (PIDA), the Continental Power System Masterplan, the African Single Electricity Market and Mission 300.
Ukundi Baldwin Mushi Vanessa, General Partner at X Green Capital Luxembourg GP S.à r.l., said the fund has been structured to attract institutional investors by combining public-private partnerships with risk mitigation measures that improve the bankability of infrastructure projects. He added that the strategy includes building a diversified pipeline of investment-ready assets while working with governments and development finance institutions to expand commercially sustainable investment opportunities throughout Africa.
Wolfgang Kröpfl, also a General Partner at X Green Capital Luxembourg GP S.à r.l., said the investment platform is designed to generate competitive long-term returns for investors while supporting Africa’s transition to a low-carbon economy through sustainable infrastructure development.
During the launch, AUDA-NEPAD also signed a memorandum of understanding with the Africa Social Security Association (ASSA) to strengthen cooperation in mobilising investment and institutional partnerships that support sustainable development across the continent. The fund was introduced alongside AUDA-NEPAD’s Programme for African Developing Island Economies, with island states identified as potential early beneficiaries through renewable energy projects and initiatives to decarbonise desalination systems. Following its official launch, the AGTPF will focus on securing government support and attracting anchor investors ahead of its planned first close in 2026, marking the next step in expanding financing for Africa’s growing pipeline of green infrastructure projects.
