An Equity Investment of ZAR 100 Million for the Evolution One Fund
Tunis - 28 May 2009- The Board of Directors of the African Development Bank Group (AfDB) approved a ZAR 100 Million equity investment in the Evolution One Fund, the first specialized private equity fund focused on the acceleration and deployment of clean energy and sustainable technologies across southern Africa to mitigate the effects of climate change on the Continent.
The Evolution One Fund will make equity and equity-related investments in sustainable projects and companies with the aim of not only achieving carbon reductions but also ensuring the sound environmental, social and economic performance of these investments. The Fund will seek to invest predominantly in growth-phase businesses, particularly in eight high-growth sectors namely clean energy/energy efficiency (up to 50% of its investments), efficient and clean manufacturing processes and technologies ("cleaner production"), air quality and emissions control, water quality and management, waste management, agribusiness and forestry, natural products, organics and natural health and environmental real estate. South Africa will account for 60-75% of the Fund's overall investments, while up to 25-40% will be earmarked for all other Southern African Development Community (SADC) countries.
Climate change is a crosscutting theme for the African Development Bank with a focus on supporting clean energy investments and infrastructure, as set out in the Bank's Medium Term Strategy 2008-2012, as well as its Clean Energy Investment Framework (CEIF), which underscores the Bank Group's increased support to clean energy projects. The Evolution One Fund will be the Bank's first investment in a fund with a specific focus on clean energy and technology investments. The investment therefore supports an innovative vehicle that will boost economic activity in this emerging field, and contribute to the development of sustainable private sector enterprises.
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