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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.


 

 

 

 

 


  

Donor: Clean Technology Initiative (CTI), Energy and Climate Partnership of the Americas (ECPA), Government of Australia (GoA), International Center for Environmental Technology Transfer (ICETT), International Development Research Centre (IDRC), Renewable Energy and Energy Efficiency Partnership (REEEP), Swedish International Development Agency (Sida), United States Trade and Development Agency (USTDA)

Donor Countries: Australia, Canada, Japan, Multi-donor, Sweden, United States of America

 

Description: CTI PFAN works as an independent and free project finance advisory service to source and prepare economically viable and environmentally beneficial clean energy and climate change projects for investment. For projects in an early stage.

 

Locations: Sub Saharan Africa

On- or Off-Grid:  Both

 

Eligibility: Any viable clean energy or climate technology including rural electrification, access to energy, productive use and adaptation technologies. Project needs to demonstrate adequate capitalization and own resources

 

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Donors: African Trade Insurance Agency (ATI)

Donor Countries: Kenya

 

Description: ATI provides political risk and trade credit risk insurance products with the objectives of reducing the business risk and cost of doing business in Africa.

 

Locations: Benin, Burundi, Democratic Republic of the Congo, Ethiopia, Kenya, Madagascar, Malawi, Rwanda, Tanzania, Uganda, Zambia, Zimbabwe

On- or Off-Grid: Both

 

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Donor:  United States Agency for International Development (USAID)

Donor Countries: United States of America

 

Description: DIV is a Grant Competition that sources, tests, and accelerates breakthrough ideas that address global development challenges around the world. Successful enterprises receive scale up funding to further develop their ideas during Early Stage with ideas progressing to a scaled up business.

 

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: Applicant solutions must show cost effectiveness, rigorous evidence of success, and proposed pathways to scale

 

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The Africa Power Access Accelerator program is now under evaluation and thus not accepting applications.

Background

Improved access to modern energy services is one of the fastest ways to drive socioeconomic development and poverty alleviation. In many markets, electrification has largely been the domain of governments, but the rise of affordable, clean distributed generation technologies is opening new opportunities for the private sector and for public-private partnerships. Access to affordable and clean play a critical role in meeting the household and productive needs of the 600 million people that currently lack affordable, reliable electricity in Africa.

 

The Problem

Developing power projects and raising finance on the African continent has proven a difficult endeavour. There are multiple projects in different stages of development, most just a concept idea, some with certain level of studies produced but far from financial close.

They need support at all the key pillars of power project development:

  • Project Preparation
  • Project Structuring
  • Project Financing

 

The Solution

The “Africa Power Access Accelerator” program by the African Power Platform (APP) bridges the existing gap between project developers and consultants / technology providers / financiers.

The APP brings in to this program the efforts of different stakeholders to partner for the successful implementation of power projects in Africa.

Bringing together the expertise of a range of partners, the "Africa Power Access Accelerator" program creates a platform where developers can access everything required to get their project to implementation. From development expertise and funding, equity and debt providers, consultants, technology and equipment providers to full EPC and O&M services, we put viable projects on a success track.

 

The “Africa Power Access Accelerator”

Technologies:

  • Solar PV
  • Hydro
  • Wind
  • Biomass
  • Geothermal
  • Gas
  • Storage
  • Hybrid

Type:

  • Utility
  • Mini-Grids

Maturity:

  • Initial Concept
  • Pre-Feasibility
  • Partial Feasibility
  • Full Bankable Feasibility
  • Financial Close

 

How it Works

  • The developer applies through a brief form
  • The APP assesses the viability and merit of the project
  • For selected projects, an action plan is put in place towards implementation

 

Evaluation Criteria

What will be assessed for project selection:

  • Support by local government
  • Technologies deployed on the project
  • Financial and technical viability
  • Environmental and Social aspects
  • Capabilities of the development team
  • Community engagement
  • Contribution to UN Sustainable Development Goals

 

Benefits for Developers

Developers applying to the “Africa Power Access Accelerator” may, if selected, get access to:

  • Advisory
  • Grants
  • Development funding
  • Equity / Debt financing
  • Partners (Consultants / Equipment / Technology / Development)
  • Co-developers

 

Program implementation (key dates)

Application:

  • 1Q19 application window (Closes 31st March 2019) - Closed
  • 2Q19 application window (Closes 30th June 2019) - Closed
  • 3Q19 application window (Closes 30th September 2019) - Closed

Evaluation:

  • Evaluation of projects submitted on 1Q19 (Closes 30th June 2019) - Ongoing - Shortlist selection
  • Evaluation of projects submitted on 2Q19 (Closes 30th September 2019) - Ongoing
  • Evaluation of projects submitted on 3Q19 (Closes 31st December 2019) - Ongoing

Support:

  • Q3 2019: Starting the support for projects submitted on 1Q19
  • Q4 2019: Starting the support for projects submitted on 2Q19
  • Q1 2020: Starting the support for projects submitted on 3Q19

 

Application Fee

There is an application fee* to cover the due diligence process, based on the project maturity:

  • Initial Concept: 0 USD (Free)
  • Pre-Feasibility: 500 USD
  • Partial Feasibility: 1,000 USD
  • Full Bankable Feasibility: 1,500 USD
  • Financial Close: 2,500 USD

 * Application is free for African Power Platform members (1 project per member). Click here for joining if your company / organization is not yet a member.

 

The Africa Power Access Accelerator program is now under evaluation and thus not accepting applications.

 

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PFAN has launched a call for proposals for climate and clean energy projects and businesses in Sub-Saharan Africa and Asia. Selected projects will receive no-cost coaching by professional consultants and, once they are investment-ready, benefit from PFAN’s Investment Facilitation services. Entrepreneurs looking to initiate or scale-up clean energy or other climate change-related projects and seeking an investment of up to $50 million are invited to apply. This is a rolling, open-ended call for proposals, which means that you may apply at any time. However, if you wish to be eligible to pitch your project in the upcoming West Africa Forum for Climate and Clean Energy Financing, to be held in the autumn of 2019, please apply by 20 January 2019.

The coaching support provided through the PFAN Project Development and Financing Initiative for Climate & Clean Energy in Sub-Saharan Africa and Asia will help entrepreneurs develop and refine a financially viable and socially and environmentally sustainable business plan, to be employed in subsequent investor outreach. After completing the coaching phase, the projects will receive assistance in terms of financial mobilisation, deal making facilitation and other follow-up supports.

 

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Nations, businesses, and investors are working to move toward a low-carbon, climate resilient economy. Many of the measures underpinning this transition, including energy efficiency, renewable energy, sustainable transport, climate smart agriculture, and curbing deforestation, face specific barriers to attracting investment.

By identifying, developing, and supporting transformative sustainable finance ideas, the Lab aims to drive billions of dollars of private investment to the low-carbon economy.

 

Call for Ideas

 

The Lab is holding an open call for ideas for financial instruments that can unlock investment to tackle some of the most difficult climate and sustainable development challenges.

  • October 9th, 2018: Call for ideas opens
  • November 7th, 2018: Webinar; details and registration here.
  • December 19th, 23:59 PST: Deadline for idea submissions
  • February, 2019: Idea proponents are notified of selection

 

What is The Lab Looking For?

 

The Lab is seeking ideas for financial instruments that can unlock investment for climate mitigation and adaptation projects in developing countries. This year, the Lab has a special call for ideas that target sustainable agriculture for smallholders in West & Central Africa, sustainable energy access, blue carbon in coastal & marine ecosystems, and sustainable cities. Ideas that target other sectors will also be considered.

 

How It Works

 

The Lab network accelerates well-designed financial instruments that can unlock billions for energy efficiency, renewable energy, sustainable transport, climate smart agriculture, and curbing deforestation, while also reducing private investors’ risks and improving their financial returns. A public-private partnership, the Lab brings together and catalyzes broader government and private sector efforts to scale up climate finance.

 

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The Finance Catalyst links renewable energy projects to finance opportunities and vice versa, targeting small- and medium-scale renewable energy (RE) projects in Sub-Saharan Africa. It provides advisory support on project development, project structuring and accessing finance through a team of dedicated experts with extensive experience in renewable energy project development and finance in Africa.

 

The Finance Catalyst services are fully complementary to other support and financing instruments in so far as they assist market participants in accessing them, and help these instruments towards stronger traction and results.

 

More info:

 

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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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