ACWA Power and the African Development Bank (AfDB) have signed a cooperation framework to jointly identify, develop, and finance up to USD 5 billion of renewable energy, grid-connected power, and water desalination projects across Africa between 2025 and 2030. The agreement was formalised during the Africa Investment Forum in Rabat, underscoring growing momentum behind large-scale infrastructure partnerships on the continent. 📊🤝🇲🇦
A Strategic Platform for Project Development and Financing 🏗️⚡🌱
The cooperation framework establishes a structured approach for collaboration across the full project lifecycle—from early-stage identification and appraisal to financing and execution. The partnership brings together ACWA Power’s global development and delivery capabilities with AfDB’s balance sheet strength, regional presence, and policy alignment, accelerating time-to-financial-close for complex infrastructure assets. 🏗️⚡🌱
The initiative places a strong emphasis on sub-Saharan Africa, where infrastructure gaps in power generation and water supply remain most acute. 🌍🔌💦
Aligning with Africa’s Energy Access Agenda 🚀⚡🌍
The framework aligns closely with Mission 300, the joint AfDB–World Bank initiative targeting electricity access for 300 million people in sub-Saharan Africa by 2030. By supporting utility-scale renewables, grid-connected generation, and desalination projects, the ACWA–AfDB collaboration directly contributes to energy access, climate resilience, and economic development objectives. 🚀⚡🌍
In addition to financing, the agreement includes a strong focus on Environmental and Social (E&S) development, reinforcing bankability and compliance with international lender standards. 🌱📘⚖️
Financial Modelling Perspective: Scaling Through Framework Agreements 📊🧮💼
From a financial modelling standpoint, framework agreements of this nature create meaningful efficiencies:
- Pipeline visibility, enabling portfolio-level capital allocation
- Repetition of bankable risk allocation structures across multiple projects
- Faster financial close through standardised documentation
- Improved cost of capital as lenders gain familiarity with sponsors and jurisdictions
For developers, such frameworks support capital recycling strategies, while for DFIs they allow scalable deployment of climate finance aligned with long-term development outcomes. 📈⚙️📉
Why ACWA Power Matters in Africa 🌍💧⚡
ACWA Power is the world’s largest private water desalination company, a leading player in the global energy transition, and an early mover in green hydrogen. Its expanding footprint across Africa positions the company as a key partner for governments seeking reliable delivery of large, capital-intensive infrastructure projects under long-term concession models. 🌍💧⚡
The partnership reinforces ACWA Power’s strategic commitment to Africa as a core growth market, particularly in regions facing simultaneous power deficits and water stress. 🌞🚰🌱
Conclusion: Mobilising Capital at Continental Scale 🚀🌍📈
The USD 5 billion ACWA Power–AfDB cooperation framework represents a significant step toward mobilising institutional capital at scale for Africa’s energy and water sectors. By combining development expertise, structured financing, and policy alignment, the partnership sets the foundation for accelerated project delivery—supporting energy access, water security, and sustainable growth across the continent. 🚀🌍📈
Finteam 