AfDB Provides Financial Support to Africa’s Renewable Energy Sector



A $ 20 million investment in the Covid-19 off-grid recovery platform has reached financial close.

A $ 20 million investment in the Covid-19 off-grid recovery platform has reached financial close.

African development bank (AfDB) obtained the financial closure of the concessional investment which was provided by the Sustainable Energy Fund for Africa.

Over a five-year period, $ 50 million in blended finance is expected to provide stimulus and relief funds for energy access companies, giving them the much-needed capital after the pandemic. of Covid-19.

Concessional loan agreements signed with London investor and fund manager Lion’s Head Global Partners, and impact investment management companies Triple jump and Social investment managers and advisers.

The AfDB Board of Directors approved the US $ 20 million concessional loan from the Sustainable Energy Fund for Africa for the establishment of the Covid-19 off-grid recovery platform in December of Last year.

Triple Jump’s sustainable energy manager Jan-Henrik Kuhlmann said in a statement that the platform has arrived “at a critical time for early stage energy access businesses affected by Covid -19 and allows the Energy Entrepreneurs Growth Fund to continue releasing flexible capital in the sector at a time when venture capital is increasingly scarce ”.

Harry Guinness, Managing Director of the Off-Grid Energy Access Fund, also noted: “African markets have been disproportionately affected by Covid-19 due to lack of infrastructure, macroeconomic vulnerabilities, especially in terms of shocks monetary and credit markets and growing global protectionism. “

The objective of the platform is to help provide financial assistance to companies focusing on the commercialization of solar home systems, green mini-grids, clean cooking and various other renewable energy services.

Explaining the impact of Covid-19 on African businesses, CEO and Managing Partner of Social Investment Managers and Advisors, Asad Mahmood, said: “Many small businesses have suffered badly during the Covid-19 crisis. AfDB’s relief efforts are market-driven and flexible and will help leverage existing funds to ultimately help power utilities in Africa.

Adding to this, Joao Duarte Cunha, Head of the Renewable Energy Division at the AfDB, stressed: “The impact of the Covid-19 pandemic is jeopardizing the immense progress that has been made over the past decade in electrification through off-grid technologies across Africa. “

Africa’s renewable energy sector has attracted investments totaling USD 34.7 billion over the past 10 years, with South Africa, Morocco and Egypt leading a Linklaters report published in May.

Last month, Clifford Chance and Linklaters acted on behalf of lenders on the structuring and financing of a large biomass power plant in West Africa.

AfDB Provides Financial Support to Africa's Renewable Energy Sector


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