The Abu Dhabi Foundation for Development (ADFD) and the International Finance Corporation (IFC), a member of the World Bank Group, have agreed to jointly invest up to AED 5.5 billion (US$ 1.5 billion) in private sector-led projects in emerging markets.
The two entities signed a memorandum of cooperation on Tuesday at the World Government Summit (WGS 2023) in Dubai, ADFD said in a press statement.
The collaborative framework supports investments in emerging markets related to clean energy transition, climate mitigation and adaptation, clean technology adoption and food security.
ADFD Director General Mohamed Saif Al Suwaidi said the cooperation framework will stimulate economic activity in the country’s private sector and in developing countries, enabling countries to achieve their development goals and plans.
“To combat climate change, ensure food security, and tackle unemployment, we need a strong private sector,” said IFC President Makhtar Diop. “We are joining forces with ADFD to co-finance private sector projects that address the most pressing challenges of our time.” “
IFC also signed a partnership agreement with UAE-based renewable energy company Masdar to explore areas of collaboration to support climate action in emerging markets at WGS 2023.
Under the agreement, Masdar and IFC will explore support for the establishment of a green hydrogen energy platform for emerging markets, as well as potential collaboration on the bankability and structuring of renewable energy projects in Africa.
The framework also includes exploring mechanisms to accelerate the adoption of distributed photovoltaic (DPV) systems, and developing innovative new technologies and business models in emerging markets to address the changing climate crisis.
At the recently concluded Abu Dhabi Sustainability Week 2023. Masdar has announced the signing of project agreements in Angola, Uganda and Zambia with a total installed capacity of 5 GW as part of Etihad 7, a UAE-led Departmental funds are invested in the development of the renewable energy sector in Africa.
(Writing by SA Kader; Editing by Anoop Menon)