African Development Bank Launches $50 Million Facility to Support Energy Businesses in Africa
The African Development Bank (AfDB) board of directors has approved a $20 million concessional investment from the Sustainable Energy Fund for Africa (SEFA) to establish the COVID-19 Off-Grid Recovery Platform (CRP).
The $50 million blended finance initiative, will provide relief and recovery capital to energy access businesses, supporting them through and beyond the pandemic.
The platform is anchored on a partnership with three specialised energy access fund managers selected through a competitive process: Triple Jump, Lion’s Head Global Partners, and Social Investment Managers and Advisors.
The $20 million concessional envelope will be blended with their own capital and instruments, leveraging $30-$40 million in complementary commercial funding and enabling more affordable debt products.
Through these partners, the recovery platform will support energy access companies commercialising and deploying solar home systems, green mini-grids, clean cooking and other decentralised renewable energy solutions.
Photo courtesy of Karsten Würth.