Abu Dhabi Fund for Development (ADFD) and the International Finance Corporation (IFC), a member of the World Bank Group, have agreed to coinvest up to 5.5 billion UAE dirhams ($1.5 billion) in private sector-led projects in emerging markets.

The two entities signed a Memorandum of Cooperation on Tuesday at World Government Summit (WGS 2023) in Dubai, ADFD said in a press statement.

The cooperation framework supports investments in emerging markets related to clean energy transition, climate mitigation and adaptation, adoption of clean technologies, and food security.

Mohamed Saif Al Suwaidi, Director General of ADFD said the cooperation framework will stimulate economic activity in both the national private sector and in developing countries, enabling countries to achieve their development goals and programs.

Makhtar Diop, IFC's Managing Director said: “To tackle climate change, ensure food security, and address unemployment, we need a strong private sector. We are joining forces with ADFD to co-finance private sector projects that address the most pressing challenges of our time.”

IFC has also a signed a cooperation agreement with UAE-based renewable energy company Masdar to explore areas of collaboration to support climate action for emerging markets at WGS 2023.

IFC-Masdar Pact

Under the agreement, Masdar and the IFC will explore support for the establishment of green hydrogen platform for emerging markets, and potential collaboration on bankability and structuring issues for African renewable energy projects.

The framework also covers exploring mechanisms to accelerate the adoption of distributed photovoltaic (DPV) systems, and the development of innovative new technologies and business models in emerging markets in response to the evolving climate crisis. 

At the recently concluded Abu Dhabi Sustainability Week 2023. Masdar announced the signing of deals for projects with a combined generation capacity of 5 GW across Angola, Uganda, and Zambia as part of Etihad 7, a UAE-led initiative that aims to raise public- and private-sector funds to invest in the development of Africa’s renewable energy sector.

(Writing by SA Kader; Editing by Anoop Menon)