Kenya, Tanzania, and Rwanda are set to benefit from a new $1 billion fund designed to support sustainable development initiatives across Africa. The Africa Capital Hub (ACH), led by Bankers without Boundaries (BwB), was introduced at the African Financial Industry Summit (Afis) in Casablanca, Morocco. Alongside Nigeria, these East African countries will be the first to access the fund.
The ACH aims to mobilize $1 billion over five years from a combination of global private, public, and philanthropic investors. This funding will be directed toward key sectors such as agriculture, energy, infrastructure, health, and education. In addition to financial support, the Hub will provide technical guidance to governments and investors, helping with the structuring and execution of projects, as well as advice on capital mobilization.
BwB’s Chief Executive Officer, Rupesh Madlani, explained that the initiative seeks to address persistent barriers to investment in Africa. “While there is a growing interest in sustainability-focused projects in Africa, challenges such as fragmented initiatives, misaligned interests between public and private sectors, and a lack of viable investment opportunities have hindered progress,” he said. “The ACH is committed to overcoming these obstacles by focusing exclusively on projects that align with environmental and social objectives, while also encouraging Africa-led collaborations to unify the continent’s investment environment.”
Kenya, Tanzania, Rwanda, and Nigeria were selected for the first phase due to their favorable business climates, strong project pipelines, and commitment to good governance. Dr. Mahmoud Mohieldin, the UN Special Envoy on Financing the 2030 Agenda and chair of the ACH advisory board, noted that these countries are also among those facing the largest financing gaps in Africa, making the initiative even more crucial.
Despite recent political unrest in Kenya, including protests that disrupted business operations, Dr. Mohieldin reassured stakeholders that these risks are not unique to the region. “Political risks are a global concern,” he said. “While countries in Africa continue to make strides in political freedom and governance, we cannot afford to wait for perfection before taking action.”
The ACH programme will officially launch in January 2025, focusing on sectors considered high-risk by many financiers. Project vetting is already underway, with stringent criteria ensuring that only projects aligned with the United Nations Sustainable Development Goals (SDGs) and having a measurable positive impact on the environment will be funded.
This initiative marks a significant step toward bridging the financing gap in East Africa, providing a much-needed boost for sustainable development projects in the region.
