ACWA Power and African Development Bank Ink $5 Billion Deal for Africa's Energy and Water Future

Strategic Partnership for Sustainable Development

ACWA Power, a leading Saudi developer, and the African Development Bank (AfDB) have formalized a strategic cooperation framework, targeting up to $5 billion in joint investments across Africa between 2025 and 2030. The agreement, signed during the Africa Investment Forum in Rabat, Morocco, is set to significantly advance renewable energy, water security, and power generation initiatives on the continent.

This landmark collaboration underscores a shared commitment to addressing Africa's pressing needs for electricity and water, leveraging ACWA Power's expertise in large-scale infrastructure projects and the AfDB's financial capabilities and regional insights.

Key Focus Areas and Objectives

Under the newly established framework, ACWA Power and the AfDB will concentrate their efforts on several critical sectors:

• Identifying and evaluating large-scale renewable power projects.
• Developing next-generation desalination infrastructure.
• Expanding grid-connected solutions across underserved regions.
• Accelerating electricity access, particularly in Sub-Saharan Africa.
• Prioritizing environmental stewardship and inclusive economic development.

The initiative directly supports 'Mission 300,' a joint program by the AfDB and the World Bank Group, which aims to provide electricity to 300 million people in Sub-Saharan Africa by 2030. This partnership is designed to shorten development timelines by aligning technical expertise with financing capacity and regional knowledge.

Quotes and Vision

Hashim Ghabashi, ACWA Power's President for Africa, emphasized the significance of the agreement, stating, 'This cooperation framework with the African Development Bank is a testament to our unwavering commitment to Africa. The continent represents a vital market for ACWA Power, and this partnership accelerates our ability to deliver transformative power and water projects at scale.' He further noted that the execution of this framework is a 'crucial step toward achieving energy and water security for millions.'

ACWA Power, recognized as the world's largest private producer of desalinated water and a leader in renewable energy and green hydrogen, views Africa as a significant future market. The collaboration will also focus on mobilizing blended finance, co-financing, and risk-mitigation instruments to attract private capital, especially in emerging and frontier African markets where funding constraints have historically hindered infrastructure development.

Impact and Future Outlook

The partnership is expected to enhance energy reliability for industrial growth, support agriculture through stable desalination services, boost cross-border transmission capacity, and create green jobs and knowledge transfer opportunities. With ACWA Power's advanced desalination technology, Africa stands to gain crucial water resilience amidst increasing climate pressures. This strategic alliance marks a significant step towards a more sustainable and energy-secure future for the African continent.