Investing in renewable energy in Africa

ARTICLE PUBLISHED by Crown publications. Original found here

In December 2018, the Directorate-General for International Cooperation and Development of the European Commission (DG DEVCO) approved an investment of EUR 25 million to the FEI On-Grid window, EUR 13 million to the FEI OGEF window, and EUR 1.6 million to support the fund’s Technical Assistance Facility, which aims to build capacity in structuring and executing transactions in African capital markets. These investments will provide junior equity to strengthen the FEI’s capital structure and enable the facility to raise funds from a range of commercial and private investors.

“Through this facility, we aim to increase co-financing and private sector investment in innovative on-grid and off-grid clean energy access solutions, and move faster towards achieving our goal of universal energy access in Africa by 2025,”

“The FEI is a great example of how the EU has been developing innovative financing initiatives with financial partners such as the African Development Bank, to stimulate and de-risk private sector investments. This will enable us to address the growing energy demands and provide access to sustainable energy in sub-Saharan Africa,” said Hugo Van Tilborg, Head of Infrastructure, and African Development Bank Liaison at the EU.

The European Commission’s contribution underscores the African Development Bank’s focus on building strong partnerships with diverse organisations to provide a range of grant and investment instruments to fast track sustainable energy access across the continent.

The FEI’s Off-Grid window reached a $58 million first close in August 2018, with contributions from the African Development Bank, the Nordic Development Fund, the Global Environment Facility, All On and Calvert Impact Capital, Shell Foundation, USAID and the UK’s Department for International Development. The FEI On-Grid window is currently raising funds towards achieving a first close of about $120 million.

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