Saudi Arabia’s ACWA Power has entered into a cooperation framework with the African Development Bank aimed at mobilising as much as $5 billion for sustainable energy and water projects across Africa, signalling an expansion of private capital participation in the continent’s infrastructure financing landscape.

The agreement sets out a pathway to identify, develop and finance projects focused on electricity access, water security and low-carbon investment, with funding envisaged between 2025 and 2030. It aligns a major Gulf-based developer and operator with Africa’s largest multilateral development bank at a time when many African economies are grappling with power shortages, climate stress and rising capital costs.

This partnership widens ACWA Power’s African investment footprint as the company seeks to scale renewable and desalination assets beyond its core Middle East markets. Headquartered in Riyadh, ACWA Power has built a portfolio spanning solar, wind, gas-to-power and water desalination projects across Asia, the Middle East and Africa, often structured as long-term public-private partnerships. Its African presence already includes utility-scale solar plants and wind projects in countries such as Morocco, Egypt and South Africa, as well as desalination initiatives supporting industrial and municipal demand.

Under the framework, ACWA Power and the African Development Bank will jointly screen opportunities across multiple countries, combining project development expertise with concessional and commercial financing instruments. The focus extends beyond generation capacity to include transmission, storage and water infrastructure, areas where funding gaps remain acute. AfDB officials have repeatedly highlighted that Africa needs tens of billions of dollars annually to meet energy transition goals and adapt water systems to climate volatility.

Electricity access remains uneven across the continent, with hundreds of millions of people still lacking reliable power. While renewable capacity has expanded steadily over the past decade, grid constraints and financing bottlenecks have slowed progress in many regions. By bringing in a developer with experience in large-scale, bankable projects, the bank is seeking to accelerate delivery while crowding in private investors wary of political and currency risks.

Water security is the second pillar of the cooperation. Climate change, population growth and urbanisation have increased pressure on water resources, particularly in North and East Africa. ACWA Power’s desalination and water treatment capabilities are expected to complement AfDB-backed initiatives aimed at improving potable water supply and supporting agriculture and industry. Desalination projects, though capital-intensive, are increasingly viewed as strategic assets for coastal economies facing chronic shortages.

The financing structure is expected to blend AfDB’s balance-sheet support, risk-mitigation tools and syndication capacity with ACWA Power’s equity and operational expertise. Multilateral backing typically lowers borrowing costs and improves bankability, an important factor as global interest rates remain elevated and emerging-market financing conditions tighten. The partnership also allows projects to tap climate finance pools linked to emissions reduction and resilience objectives.

For ACWA Power, the agreement supports its stated ambition to expand its global portfolio while maintaining a strong focus on renewables. The company has publicly committed to increasing the share of clean energy in its assets, reflecting both policy trends and investor expectations. Africa offers long-term growth potential, driven by demographics and under-penetration of modern infrastructure, but requires careful risk management and collaboration with local stakeholders.

From the African Development Bank’s perspective, the cooperation fits within its broader strategy to leverage private capital to meet development goals. The bank has positioned itself as a catalyst rather than sole financier, particularly for large infrastructure projects that exceed public funding capacity. Partnerships with international developers are intended to transfer technical know-how, improve project execution and create replicable models across different markets.