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Financing

Financing

We publish here the relevant financing programs for the power sector in Africa. Feel free to join our efforts and share us any other you may have found. We'd be glad to add them to the list. Just send an email to This email address is being protected from spambots. You need JavaScript enabled to view it.


 

 

 

 

 


 

Donors:  German Development Bank (Kreditanstalt für Wiederaufbau) (KfW), Private Investment Development Group (PIDG)

Donor Countries: Germany, Multi-donor

 

Description: Provides direct finance to infrastructure projects in emerging economies. The Fund is available to all private infrastructure projects originated by International Financial Institutions.

 

Location: Sub Saharan Africa

On- or Off-Grid: Not Specified

 

Geography: Sub Saharan Africa

 

Eligibility: The Fund is available to all (non-distressed) infrastructure projects originated by International Finance Institutions that cannot obtain commercial financing or re-finance existing loans as a consequence of the global financial crisis and the tightening of bank lending

 

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Donor: Export-Import Bank of the United States (US EXIM)

Donor Countries: United States of America

 

Description: Debt financing to purchase U.S. capital equipment & services for financiers of foreign buyers.

 

Location: Angola, Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Chad, Comoros, Côte d'Ivoire, Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Republic of the Congo, Rwanda, Réunion, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, South Africa, Sub Saharan Africa, Swaziland, Tanzania, Togo, Uganda, Western Sahara, Zambia, Zimbabwe

On- or Off-Grid: On-Grid

 

Geography: EXIM Country Limitation Schedule

 

Eligibility: Must have: been in business for one year, at least one person working in the firm full time, positive net worth; must export U.S.-made products and/or services provided by U.S. workers.

 

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Donor: African Development Bank (AfDB)

Donor Countries:  Cote d'Ivoire

 

Description: AfDB capital for decentralized renewables for debt, in local currency. FEI will focus on providing senior and mezzanine debt to off-grid, mini-grid and small-scale Independent Power Producers (IPP). The Fund will provide hard and local currency financing.

 

Location: Sub Saharan Africa

On- or Off-Grid: Both

 

Geography: Sub Saharan Africa

 

Eligibility: Projects with total costs under USD$30 million.

 

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Donor: Export Credit Norway

Donor Countries: Norway

 

Description: Loans to purchase goods and services from Norwegian exporters.

 

Location: Sub Saharan Africa

On- or Off-Grid: Not Specified

 

Geography: Sub Saharan Africa

 

Eligibility: Loans are priced on market terms and in compliance with the state subsidy rules. Comply with OECD Arrangement on Officially Supported Export Credits

 

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Donors: Deutsche Bank, Green Climate Fund (GCF)

Donor Countries: Germany, Multi-donor

 

Description: Blended finance model, leveraging private capital and building capacity for lending to green ESCOs among local FIs in 8 SSA countries. The user would be local financial institutions lending to green energy supply companies.

 

Location: Benin, Kenya, Namibia, Nigeria, Tanzania

On- or Off-Grid: Both

 

Geography: Phase 1: Kenya, Rwanda, Tanzania, Uganda, Namibia, Zambia.

Phase 2: Any country active in sub-Saharan Africa.

 

Eligibility: First call for proposals closed May 2016

- second call for proposals - 4th quarter of 2016

Lend 5-10 year senior USD debt:

— Through local FIs to deliver capital to local energy supply companies in local currency; or

— Directly as syndicated project finance loans in parallel to local & regional (development) banks (no FX exposure

envisaged).

 

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Donor: European Union (EU), United States Agency for International Development (USAID)

Donor Countries: European Union, United States of America

 

Description: ElectriFI was created as a financing scheme to bridge the gaps in structuring and financing, thus stimulating the private sector, and mobilizing financiers in the sector of energy development cooperation. It is a fund for renewable energy investments and energy efficiency with a focus on rural electrification. ElectriFI contribution per project is EUR 10.0 million (or equivalent local currency). Support can be made available in the forms of technical assistance, investment grants, interest rate subsidies, guarantees, debt, quasi-equity and equity. ElectriFI provides financial support primarily through risk capital. It does not provide grant funding, concessional loans or other low-cost capital.

 

Location: Sub Saharan Africa

On- or Off-Grid: Both

 

Geography: Sub Saharan Africa

 

Eligibility: Total budget above €0.5 million, early projects or pilot phase, own capital is expected to be in the scale of 15-50%

 

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Donors: Department for International Development (DFID), Dutch Ministry of Foreign Affairs (DGIS), Swedish International Development Agency (Sida), Swiss State Secretariat for Economic Affairs (SECO)

Donor Countries: Netherlands, Sweden, Switzerland, United Kingdom

 

Description: EAIF provides long-term debt finance on commercial terms to finance the construction and development of private infrastructure.

 

Locations: Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Côte d'Ivoire, Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Namibia, Niger, Nigeria, Republic of the Congo, Rwanda, Réunion, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, South Sudan, Sub Saharan Africa, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia, Zimbabwe

On- or Off-Grid: Not Specified

 

Geography: Sub Saharan Africa (except Mauritius)

 

Eligibility: Project promoters can be wholly owned in Africa, joint ventures with other African or non-African businesses, or international businesses expanding in Africa or entering African markets for the first time.

 

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Donor: Swedish Export Credit Corporation (SEK)

Donor Countries: Sweden

 

Description: Swedish export credit to buyers of Swedish capital goods and services. Commercial loans to buyers of Swedish capital goods and services. Discounting of trade receivables, often guaranteed by EKN to reduce credit risk.

 

Location: Other

On- or Off-Grid: Not Specified

 

Geography: Established exporters and credit-worthy buyers who are not on the international sanctions lists, including US.

 

Eligibility: Swedish interests must be involved. In cooperation with the bank.

 

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Donor: Export-Import Bank of the United States (US EXIM)

Donor Countries: United States of America

 

Description: Long-term fixed rate financing to purchase U.S. capital equipment & services for creditworthy international buyers in both the private and public sector.

 

Location: Angola, Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Chad, Comoros, Côte d'Ivoire, Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Republic of the Congo, Rwanda, Réunion, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, South Africa, Sub Saharan Africa, Swaziland, Tanzania, Togo, Uganda, Western Sahara, Zambia, Zimbabwe

On- or Off-Grid: Both

 

Geography: EXIM Country Limitation Schedule

 

Eligibility: EXIM Bank finances only the U.S content. Must export U.S.-made products and/or services provided by U.S. workers

 

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Donor: World Bank (WB)

Donor Countries:  Multi-donor

 

Description: Development Policy Financing provides IBRD loan, IDA credit/grant and guarantee budget support to governments or a political subdivision for a program of policy and institutional actions to help achieve sustainable, shared growth and poverty reduction.

 

Location: Sub Saharan Africa

On- or Off-Grid: Not Specified

 

Geography: WB member countries

 

Eligibility: Approved as per WB process

 

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Donors: Development Bank of Southern Africa (DBSA)

Donor Countries: South Africa

 

Description: The DBSA provides funding, related products and services for commercially viable and sustainable projects in the energy sector, which contribute to economic development and regional integration.

 

Location: Sub Saharan Africa

On- or Off-Grid: Both

 

Eligibility: DBSA Approval process

 

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Donors: Climate Fund Managers (CFM), Dutch Development Bank (FMO), United States Agency for International Development (USAID)

Donor Countries:  Multi-donor, Netherlands, United States of America

 

Description: Climate Investor One (CIO) is a financing facility designed to support renewable projects through sequential stages of the project’s life. CIO provides technical, environmental and social due diligence together with development costs support at an early stage. It then finances a large part of construction costs with equity, removing the need for debt finance during construction. Finally, once the project is operational, CIO provides long term debt to deliver stability and optimized funding during the operational stage.

 

Location: Ghana, Kenya, Nigeria, Rwanda, Tanzania

On- or Off-Grid: Not Specified

 

Geography: Primarily low and lower-middle income countries. Initial, but not exclusive, focus on Kenya, Tanzania, Rwanda, Ghana, Nigeria.

 

Eligibility: CIO will finance up to 50% of the development and 75% of the construction costs subject to a cap of USD$5 million and USD$75 million, respectively

 

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Donors: African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IDB), World Bank (WB)

Donor Countries: Cote d'Ivoire, European Union, Multi-donor

 

Description: CTF: Highly concessional resources to scale up the demonstration, deployment, and transfer of low carbon technologies in renewable energy, energy efficiency during the project development stage.

 

Location: Nigeria, South Africa

On- or Off-Grid: Both

 

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Donors: Agence Francaise de Developpement (AFD), Industrial Development Corporation (IDC)

Donor Countries: France, South Africa

 

Description: To provide finance to renewable energy and energy efficiency projects of smaller scale and manufacturing of green products in South Africa.

 

Location: South Africa

On- or Off-Grid: Both

 

Geography: South Africa

 

Eligibility: Solar and biomass; other technologies are considered on a case by case basis. Energy Efficiency (EE):

- A maximum of 200% increase in production capacity is allowed for expansion projects; and

- Greenfield operations are considered on a case by case basis.

AFD funds are blended at a leverage level of at most 50% funding from IDC; and no refinancing

 

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The Facility for Energy Inclusion (FEI) is debt financing facility for small-scale energy access projects - off-grid solar, small IPPs, captive installations and mini-grids. FEI is a $500m initiative capitalised by the African Development Bank, other development finance institutions and commercial investors. FEI will structure transactions, engage local capital markets, finance projects and companies, and accelerate access to clean energy across Africa.

Access to debt financing was identified as on of the major barriers to implementation and expansions in the off-grid, small scale RE and mini-grids segments of the energy markets. FEI was established to provide debt financing through two distinct windows:

  • FEI OGEF: Off-Grid Energy Access Fund providing consumer and corporate financing solutions to solar off-grid companies and the related ecosystem
  • FEI On-grid: On-Grid Fund offering flexible project and corporate finance solutions to RE projects of less than 25MW and mini-grids.

  

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Africa50 is an infrastructure investment platform that contributes to Africa's growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact.

 

Africa50's core value proposition provides:

  • Close relationships with African government shareholders and the AfDB, which are critically important in the infrastructure development and financing process.
  • Jurisdiction-specific risk mitigation through high-level public sector engagement.
  • Preferential access to deal-flow generated from project development activities and through ongoing dialogue with its government shareholders.
  • An experienced investment team with a demonstrated track record of deal making.
  • Access to competitive finance, including long-term debt from the AfDB and DFI community, as well as existing concessional funding.
  • International best-practice environmental, social and governance standards.

 

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SUNREF provides solutions for the new energy and environmental transition by helping private actors in the South to seize its opportunities and encouraging local financial institutions to finance it.

 

Seizing the opportunities of the ecological transition

 

Environmental integration offers significant economic development potential: green growth provides a number of opportunities to companies through new markets, especially in the fields of:

  • Energy management
  • Sustainable natural resources management
  • Environmental protection

In developing countries, financing this green growth is a major challenge. Agence Française de Développement (AFD) contributes to this challenge in partnership with banks in the South.

 

SUNREF integrated approach

 

SUNREF’s innovation is based on the combination of a financial approach and a technical approach. The aim is to meet the demand of partner banks and project initiators:

  • The financial approach involves providing local partner banks with long-term loans (green credit lines). These loans can be allocated on favorable terms on the basis of certain criteria (maturity of green financing market, type of investment, target client base);
  • The technical approach aims to support and scale up the market for green investment financing by assisting banks in project financing and building the capacities of companies to implement strategies for an optimized use of energy and natural resources.

 

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OFID is a pioneer of energy poverty alleviation and energy sits at the core of the organization’s strategic framework.  By taking a nexus approach to energy poverty – addressing energy alongside water and food security – the organization aims to ensure that policies across the three sectors are aligned.

Sustainable Development Goal (SDG) 7 calls for access to affordable, reliable, sustainable and modern energy for all. Energy is widely accepted as one of the most important catalysts for development. Without energy, it is impossible to provide healthcare and education, supply clean water, support food security and end hunger or ultimately eradicate poverty. Energy access is a true enabler and impacts all other SDGs.

 

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GCPF mainly supplies financing to local financial institutions, which provide sub-loans for energy projects that benefit small and medium-sized businesses and private households in particular. GCPF also finances energy efficiency and renewable energy projects directly. Eligible projects cover different sectors and loan sizes.

Energy efficiency projects: Eligible projects must provide projected energy savings and/or CO2 emissions reductions of at least 20%

Renewable energy projects: Most commercially viable renewable energy generation technologies are eligible for financing, with the exception of bioliquid or biofuel production. GCPF targets renewable energy projects for the retail market, such as home solar systems, as well as small-scale renewable generation plants.

 

FINANCIAL INSTITUTIONS

GCPF funds local financial institutions that:

  • Are committed to building a green lending portfolio
  • Meet GCPF’s social and environmental standards

 

GCPF offers:

  • Dedicated funding in the form of senior or subordinated debt
  • Mid to long-term financing
  • Total facilities usually amounting to USD 10 million – USD 30 million, with flexible funding schedules
  • Financing of up to 49.9% of tier 1 capital and/or up to 25% of total assets

 

DIRECT INVESTMENTS

GCPF funds small scale projects (typically up to 30 MW) that:

  • Are in a late development stage or fully authorised
  • Comply with GCPF’s social and environmental management standards

 

GCPF offers:

  • Direct funding primarily in the form of senior debt
  • Maturities of up to 15 years
  • Typical deal size of between USD 5 million and USD 15 million.

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Sub-Saharan Africa is a region of increased focus for OPIC and comprises more than one-quarter of the agency’s active portfolio. Africa is home not only to many of the world’s poorest countries, but also to many of the world’s fastest-growing economies, and presents both a great need for investment and a great opportunity for investors.

Impact investing is an increasingly important financial tool that seeks to leverage private capital to address the world’s critical development challenges. OPIC has long been a leader in impact investing, and uses its core development finance tools of project financing, political risk insurance, and capitalization of private equity funds to support impact investments. In fiscal year 2017 OPIC committed $1.7 billion to 52 deals to support impact investments.

OPIC provides financial products, such as loans and guaranties; political risk insurance; and support for investment funds, all of which help American businesses expand into emerging markets. By mobilizing private capital to help solve critical development challenges, OPIC advances U.S. foreign policy, and catalyzes revenues, jobs and growth opportunities both at home and abroad.

 

Electrify Africa

OPIC has long supported projects to bring electricity to underserved populations and supports several projects to advance the Power Africa initiative, including a run-of-river hydropower plant in Uganda, two power projects in Senegal, and multiple projects that are delivering off-grid power to remote populations.

 

 

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STRATEGIC PARTNERS

Spintelligent
SAAEA
Pennwell
ALER

MEDIA PARTNERS

Renewables Now

EVENT PARTNERS

Africa Energy Forum
Future Energy East Africa
Future Energy Nigeria
Electricx
POWER-GEN Africa
Africa Energy Indaba 2020

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