Calling solar companies to get funding from new green energy fund for off-grid projects
Abidjan – The Facility for Energy Inclusion announced this week that its Off-Grid Energy Access Fund has reached a final equity close with US$59 million in committed equity capital and US$36 million debt facilities, to support innovative, off-grid energy access companies.
The African Development Bank (AfDB.org) is the fund’s anchor sponsor with a US$30 million contribution, and US$8.5 million from the Global Environment Facility (GEF). The fund is managed by Lion’s Head Global Partners.
The final close, reached on 18 November 2019, was made possible through a US$15 million equity contribution from the European Union (EU), and a further US$17 million from the KfW, acting on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ). Additionally, the EU is providing US$2 million to fund a technical assistance facility, to enhance local currency financing.
Other equity investors in the fund include the Nordic Development Fund and All On Calvert Impact Capital and the Prudential Insurance Company of America. The fund has set a US$30 million target for further debt facilities.
Acting Vice-president for Power, Energy, Climate Change and Green Growth of the African Development Bank, Wale Shonibare said “We are pleased to welcome the participation of like-minded partners in our shared ambition to promote access to modern, reliable and sustainable energy in Africa, and to enhance private sector participation in order deliver electricity to under-served communities in Africa.”
Modern, high-quality off-grid connections can transform lives, Babette Stein von Kamienski, the KfW’s Director of Power and Energy in Southern Africa, noted.
“KfW and BMZ have invested in [the fund] to support this collaborative effort to advance climate friendly off-grid energy in Africa, demonstrating that off-grid solutions can complement sustained grid electrification to accelerate electricity access for millions of Africans,” she said.
Fund Manager, Harry Guinness, said “We are proud to have reached this milestone and excited to play a meaningful role in growing the sector and serve customers who are not currently served by traditional electricity grids. The off-grid market potential is massive and on track to transform electricity access in Africa.”