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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: Government of Canada (GoC), International Finance Corporation (IFC)

Donor Countries: Canada, Multi-donor

 

Description: The objective of the Program is to address market barriers that prevent the faster, more widespread or longer-term sustainable adoption of low-carbon technologies and business models designed to address climate change. These include, for example, the lack of financing for clean energy projects due to financial intermediaries’ lack of expertise and perceptions of high risk; the limited capacity, experience, and information available to companies that seek to develop clean energy projects; and the lack of a supportive enabling environment.

 

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

On- or Off-Grid: Both

 

Geography: Projects funded by the Program Countries that are eligible for Overseas Development Assistance (ODA) and are also Non-Annex I Parties to the United Nations Framework Convention on Climate Change.

 

Eligibility: Eligible investments and advisory services activities support the abatement of greenhouse gas (GHG) emissions and climate adaptation opportunities, such as those related to (i) low carbon actions in the power sector, including renewable energy and increased efficiency in generation, transmission, and distribution; (ii) large-scale adoption of energy efficient technologies and other demand management techniques in industrial sectors, as well as commercial and residential buildings; (iii) sustainable agriculture, forestry, and land use; and (iv) reductions in the vulnerability of human or natural systems to actual or expected climate change impacts and risks by maintaining or increasing adaptive capacity and resilience.

 

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Donor: International Finance Corporation (IFC)

Donor Countries: Multi-donor

 

Description: Offers local governments and creditworthy State-Owned Enterprises the opportunity to finance public infrastructure projects without sovereign guarantees. Also helps mobilize domestic resources, by e.g. using partial guarantee instruments. Primarily water and waste water, but also includes power, district heating, and gas transmission and distribution.

 

Location: Sub Saharan Africa

On- or Off-Grid: Both

 

Geography: Developing countries that are a member of IFC, and regional programs.

 

Eligibility: Creditworthy municipal and regional governments, and their service entities; selected nationally-owned infrastructure enterprises; banks and financial institutions that finance subnational infrastructure; PPPs that provide subnational infrastructure.

 

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Donor: International Finance Corporation (IFC)

Donor Countries: Multi-donor

 

Description: Funds up to $8 million of a project’s expenses at an early stage of development, to bring it from an idea to financial close. Funded activities can include: feasibility studies, Environmental & Social studies, managing stakeholder relationships, financial modeling, negotiating financing and legal documents, selecting project participants, and sourcing equity and debt financing. Not grant funding, and may include follow-on investments.

 

Location: Sub Saharan Africa

On- or Off-Grid: On-Grid

 

Geography: Developing countries that are a member of IFC, and regional programs.

 

Eligibility: Sponsor has secured preliminary support and authorization for the project from the government or other clients, and has conducted assessments showing that the project is economically viable.

 

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Donor: International Finance Corporation (IFC)

Donor Countries: Multi-donor

 

Description: Finances electricity generation, transmission, and distribution upgrades in developing countries, with a particular focus on natural gas and renewable energy such as solar, wind, and hydropower. Can finance projects at an early stage, lead investment rounds, mobilize additional funding through syndication programs, and work with the World Bank on an integrated series of reforms and guarantees to support a transaction.

 

Location: Sub Saharan Africa

On- or Off-Grid: Both

 

Geography: Developing countries that are a member of IFC, and regional programs.

 

Eligibility: Project must have good prospects of being profitable, benefit the local economy, and meet IFC's Performance Standards. Requires detailed appraisal, and review and approval by IFC Board. IFC does not lend directly to SME's or individuals.

 

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Donors: International Finance Corporation (IFC), World Bank (WB)

Donor Countries: Multi-donor

 

Description: Helps develop public-private partnerships and private projects for infrastructure in developing countries . It provides early-stage risk capital and actively participates in the project development phase to create private infrastructure projects that are commercially viable and able to more rapidly achieve financing close. The IFC serves as a codeveloper and provides expertise in critical areas, while partially funding the project's development. For Private project developers. Fund can provide up to $8 million in early stage for project expenses (Feasibility Studies, Environmental Studies, Financial Models, Negotiating terms etc.) Mainly for grid scale utility-size projects.

 

Location: Sub Saharan Africa

On- or Off-Grid: Not Specified

 

Geography: Sub Saharan Africa

 

Eligibility: Project must be a PPP. Must be early stage. Generally for projects > $200 million

 

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Donor: World Bank (WB)

Donor Countries: Multi-donor

 

Description: Covers private lenders, or investors through shareholder loans, against the risk of a government (or governmentowned entity) failing to perform its contractual obligations with respect to a private project. Specifically, PRGs can cover currency inconvertibility/non-transferability; political force majeure risks such as expropriation; war and civil disturbance; material adverse government action; government's contractual payment obligations; regulatory risk; change of law and regulations; negation or cancellation of license and approval; non-allowance for agreed tariff adjustment formula or regime; contractual performance of offtake agreements or input supply agreements, frustration of arbitration; and certain force majeure events

 

Location: Benin, Burkina Faso, Burundi, Cameroon, Cape Verde, Chad, Comoros, Côte d'Ivoire, Democratic Republic of the Congo, Eritrea, Ethiopia, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Tanzania, Togo, Uganda, Zambia, Zimbabwe

On- or Off-Grid: Both

 

Geography: World Bank IDA borrowing countries

 

Eligibility: Projects with private participation dependent on certain government contractual undertaking, such as: Build-OperateTransfer (BOT) and concession projects; Public-Private Partnership (PPP) projects; privatizations. Can be either greenfield or existing projects. Requires World Bank due diligence and approval by the Board.

 

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Donors: Department for International Development (DFID), Dutch Development Bank (FMO), Swedish International Development Agency (Sida), Swiss State Secretariat for Economic Affairs (SECO)

Donor Countries: Netherlands, Sweden, Switzerland, United Kingdom

 

Description: GuarantCo provides guarantees to lenders to support local currency finance for infrastructure projects in low-income countries, promoting domestic infrastructure financing and capital market development for private sector, project sponsors, developers, lenders.

 

Location: Sub Saharan Africa

On- or Off-Grid: Not Specified

 

Geography: Sub Saharan Africa

 

Eligibility: DAC 1, 2 or 3 countries

 

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Donors: Agence Francaise de Developpement (AFD), Department for International Development (DFID)

Donor Countries: France, United Kingdom

 

Description: Aims to help transform the GMGs sector in Africa by enabling a critical mass of experience and evidence of success in the two leading countries of Kenya and Tanzania, coupled with improved policy and market conditions for mini-grids regionally

 

Location:  Kenya, Tanzania

On- or Off-Grid: Off-Grid

 

Geography: Kenya, Tanzania

 

Eligibility: Not Specified

 

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Donors: Department for Business, Energy & Industrial Strategy (BEIS), Department for International Development (DFID), Norwegian Ministry of Foreign Affairs

Donor Countries: Norway, United Kingdom

 

Description: Stimulate private sector investment in renewable energy in sub-Saharan Africa. Acting as a long-term source of financing and policy support to projects.

 

Location:  Sub Saharan Africa

On- or Off-Grid: Not Specified

 

Geography: Sub Saharan Africa

 

Eligibility: DAC 1, 2 or 3 countries (OECD)

 

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Donors: African Union Commission (AUC), Department for International Development (DFID), EU-Africa Infrastructure Trust Fund (EU-AITF), Federal Ministry for Economic Cooperation and Development (BMZ), German Development Bank (Kreditanstalt für Wiederaufbau) (KfW)

Donor Countries: European Union, Germany, Multi-donor, United Kingdom

 

Description: Grant support for surface studies and drilling & testing reservoir confirmation wells. For project development activities up to updated bankable feasibility study after exploration drilling.

 

Locations: Burundi, Comoros, Democratic Republic of the Congo, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Tanzania, Uganda, Zambia

On- or Off-Grid:  On-Grid

 

Geography: Ethiopia, Kenya, Rwanda, Tanzania, Uganda, Burundi, Comoros, Djibouti, DRC, Eritrea, Zambia

 

Eligibility: Qualification phase

 

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Donor: Norwegian Export Credit Guarantee Agency (GIEK)

Donor Countries: Norway

 

Description: Issues guarantees – political and commercial risks - on behalf of the Norwegian state.

 

Locations: Sub Saharan Africa

On- or Off-Grid:  Both

 

Geography: Sub Saharan Africa

 

Eligibility: Support is open to Norwegian exporters and foreign buyers of Norwegian equipment and services. Organized and managed in accordance with the OECD Export Credits Arrangement.

 

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Donor: African Development Bank (AfDB), Development Bank of Austria (OeEB), Japan International Cooperation Agency (JICA)

Donor Countries: Austria, Cote d'Ivoire, Japan

 

Description: Grants/Co-financing for capacity building, advisory services, & support to MSME's. The program is open to private sector investors, concession tendering entities and project developers.

 

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, Mauritius, Mozambique, Namibia, Niger, Nigeria, Republic of the Congo, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, South Sudan, Sub Saharan Africa, Sudan, Tanzania, Togo, Uganda, Zambia, Zimbabwe

On- or Off-Grid:  Both

 

Geography: Any AfDB Regional Member Country

 

Eligibility: AfDB Preliminary Screening Criteria

 

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Donor: Japan Bank for International Cooperation (JBIC)

Donor Countries: Japan

 

Description: JBIC supports the promotion of economic structural reform through economic diversification and industrialization in Africa by drawing on its financial instruments such as loans, equity participations and guarantees. The facility is not a fund or account, but a program with specific procedures for managing operations.

 

Locations: Sub Saharan Africa

On- or Off-Grid:  Both

 

Geography: SSA

 

Eligibility: JBIC Criteria

 

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Donor: Department for International Development (DFID), International Finance Corporation (IFC), Swedish International Development Agency (Sida), United States Agency for International Development (USAID), World Bank (WB)

Donor Countries: Multi-donor, Sweden, United Kingdom, United States of America

 

Description: Various Programs to support enterprises (SME) with business support, technical support and financing.

 

Locations: Sub Saharan Africa

On- or Off-Grid:  Off-Grid

 

Geography: Sub Saharan Africa

 

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Donor: Austrian Development Agency (ADA), Department for International Development (DFID), Ministry of Foreign Affairs Finland

Donor Countries: Austria, Finland, United Kingdom

 

Description: Focused on projects in all fields of renewable energy and energy efficiency, bridging the gap between a good idea and a bankable project by providing partial financing to project proposals. These projects include various types of feasibility studies aiming at concrete investments, as well as pilot, scale-up and demonstration projects. Open to the Private sector or Public-Private Partnerships.

 

Locations: Botswana, Burundi, Kenya, Lesotho, Mozambique, Namibia, Rwanda, Seychelles, South Africa, Swaziland, Tanzania, Uganda, Zambia

On- or Off-Grid:  Both

 

Geography: Botswana, Burundi, Kenya, Lesotho, Mozambique, Namibia, Rwanda, Seychelles, South Africa, Swaziland, Tanzania, Uganda, Zambia

 

Eligibility: Ownership (country of origin) – locally based in country of project implementation

 

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Donor: Swedish Export Credit Guarantee Board (EKN)

Donor Countries: Sweden

 

Description: Guarantees to the international lenders who finance the purchase of Swedish goods/services and cover for risk of nonpayment due to commercial and political events and is open to foreign buyers and exporters.

 

Locations: Sub Saharan Africa

On- or Off-Grid:  Not Specified

 

Geography: Sub Saharan Africa

 

Eligibility: Considerable involvement of Swedish companies or interests is necessary in order to secure funding

 

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Donor: United States Agency for International Development (USAID)

Donor Countries: United States of America

 

Description: The Development Credit Authority (DCA) uses partial credit guarantees to mobilize local commercial debt financing in developing countries. Guarantee agreements encourage private lenders to extend financing to underserved borrowers in new sectors and regions and these lenders are more likely to continue lending even when the USAID Guarantee expires. This can be through issuing USAID guarantees for example; Loan Guarantees, Portfolio Guarantees, Portable Guarantees or Bond Guarantees.

 

Locations: Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Côte d'Ivoire, Democratic Republic of the Congo, Djibouti, Ethiopia, Ghana, Guinea, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Namibia, Niger, Nigeria, Republic of the Congo, Rwanda, Senegal, Sierra Leone, Somalia, South Africa, South Sudan, Sudan, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe

On- or Off-Grid:  Both

 

Geography: USAID presence countries

 

Eligibility: Non-sovereign debt only. No US connection required

 

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Donor:  Commonwealth Development Corporation Group (CDC), Department for International Development (DFID), European Investment Bank (EIB), Fonds Francaise pour l'Environnement Mondial (FFEM), OPEC Fund for International Development (OFID), Proparco, Schneider Electric

Donor Countries: European Union, France, Multi-donor, United Kingdom

 

Description: Funding, capacity building and technical support to SMEs active in the generation and/or distribution of electricity in the region. The aim of the fund is to provide improved, reliable access to energy for one million low-come households by 2020. For off-grid rural electrification.

 

Locations: Burundi, Ethiopia, Kenya, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia, Zimbabwe

On- or Off-Grid:  Off-Grid

 

Geography:  Will start with companies active in East Africa before expanding to other African countries. In all, the fund will target Kenya, Uganda, Rwanda, Burundi, Tanzania, Zambia, Malawi, Zimbabwe, Mozambique and Ethiopia.

 

Eligibility: The fund will mainly invest in small and medium size enterprises active in the generation and/or distribution of electricity in the region, that do not have access to financing

 

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Donor:  Development Bank of Southern Africa (DBSA)

Donor Countries: South Africa

 

Description: The DBSA project preparation funds are earmarked for projects which the DBSA’s financing divisions can include in their pipeline. The funds are intended to be used for the following:

- Creating an enabling environment for infrastructure projects to implemented

- Conducting pre-feasibility studies

- Conducting bankable feasibility studies

- Assistance with costs to reach financial close

These funds are provided with the view that projects prepared with these funds will be funded through DBSA’s Lending divisions.

 

Locations: Sub Saharan Africa

On- or Off-Grid:  Both

 

Eligibility: DBSA Approval process

 

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

Donor Countries: United States of America

 

Description: Loan guarantees to purchase U.S. capital equipment & services for Financiers of foreign buyers.

 

Locations: 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, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, South Africa, Sub Saharan Africa, Swaziland, Tanzania, Togo, Uganda, 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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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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