29 September 2020: Life is cool with Koolboks and PaygOps announcing a refreshing partnership to provide energy-efficient refrigerators built to generate continuous cooling in the absence of power. This innovative product combines advanced Paygo technologies and affordability to empower households and small businesses at the BoP!

“We’re thrilled to be working with the PaygOps team to expand the outreach of our products to customers that are very sensitive to upfront investments. It has been a highly positive experience so far and crucial to our mission to make refrigeration accessible to all.” Says Ayoola Dominic, CEO and Co-Founder, Koolboks.

Utilising the natural power of the sun and water, Koolboks has created a truly innovative product for the Sub-Saharan African market. This is the Koolhome solar refrigerator that provides continuous cooling for up to 4 days in the absence of power and sunlight and comes equipped with external LED bulbs for lighting at night and 2 USB ports to charge mobile phones. This is made possible through its innovative ice batteries. During the day, ice is stored in ice batteries through solar energy rather than lithium batteries and used at night when the sun is out. This solution reduces production costs by over 40% and increases energy efficiency.

To reduce the high upfront costs required to own solar refrigerators, the Koolhome solar freezers have integrated in it a PAYGO technology that enables customers to pay for the cooling service in small installments. This makes use of Solaris Offgrid’s OpenPAYGO token implementation which works by the generation of tokens. The users will input these tokens into the device (refrigerator) through the keypad to activate the refrigerator for a certain period of time.

Thanks to the OpenPAYGO Token, an open-source solution developed by Solaris Offgrid and The EnAccess Foundation, the Koolhome solar refrigerator is now Paygo-enabled, to offer more flexibility and affordability for customers at the last-mile, through easy payment instalments. In addition, distributors of Koolboks products will be able to integrate with any Paygo software such as PaygOps to efficiently manage their last-mile operations thanks to advanced lease financing, sales, after-sales and inventory management features.

“PaygOps is on a mission to provide greater access to essential services beyond SHS. Access to cold/freezing services is such an essential commodity to farmers, micro-entrepreneurs and households, making the services provided by Koolboks critical to so many. Through the means of Paygo technologies, such as Openpaygo Token and PaygOps, we are honoured to support Koolboks in its expansion” adds Thibault Lesueur, Co-founder and CMO at Solaris Offgrid.

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About Solaris Offgrid: Solaris Offgrid supports solar energy distributors to build strong customer traction and greater relations with investors through flexible and inclusive Paygo solutions, designed for last-mile operations. Adopting a bottom up approach in the design of its solutions and creating synergies with a strong network of partners to solve last-mile challenges, the company has already deployed Paygo solutions in nearly 20 countries through PaygOps, Solaris Offgrid in-house software solution built “In the Field, for the Field” and its product design services. Leading reference in the off-grid solar market, PaygOps, is engineered to deliver modular and interoperable solutions to address off-grid energy access challenges and distribution complexity.

About Koolboks: Koolboks is a tech startup based in France with an offshoot in Nigeria that seeks to democratise the way the world experiences cooling. It’s mission is to make refrigeration affordable and accessible to all, by providing solar powered cooling devices. Koolboks coolers, the first Koolboks product, have been sold in 70 stores globally, gaining widespread attention from publications such as GQ, Le Figaro, Forbes, BFM News, Journal Du Geek and Le Parisien. Looking to diversify and cater specifically to the Sub-Saharan African market, they have created the Koolhome. Koolboks aims to utilize its technology for the betterment of mankind and to provide increased access to clean energy.

12 October 2020: Spacecom (Tel Aviv Stock Exchange: SCC), operator of the AMOS satellites fleet and Ignite Power, a Pan-African developer of vital infrastructure projects, are pleased to announce the signing of a Strategic Cooperation Agreement. Under the new agreement, the companies will collaborate to install e-Health connectivity solutions in remote clinics, which will provide local medical teams with immediate access to physicians around the world, as well as data analysis over the cloud. Using designed-for-solar medical devices and systems and satellite connectivity, all will be powered by cost-effective off-grid solar systems. With the support of global medical experts, doctors and paramedics in these rural areas will have the opportunity to expand their reach and knowledge to new treatments and procedures.

For billions of people in developing countries, access to the Internet and advanced digital services is still a distant dream. It is precisely the populations, who need it the most, that live without enjoying the tremendous benefits enabled by the information revolution, and the gap between developing and developed countries continues to grow. Together, Spacecom and Ignite are determined to make a change and create a new reality which provides digital equality.

The solution comprises of communication through Spacecom’s advanced AMOS-17, digital High Throughput Satellite and Ignite’s sustainable off-grid solar power solutions and diagnostic systems. The mutual solution enables an efficient infrastructure as the basis for digital communities and services to rural locations. It is set to create thousands of jobs while empowering an entire generation of students to new skills and remote learning capabilities, through e-Learning platforms.

AMOS-17 operates over Sub-Saharan Africa, providing C-Band HTS, Ka-Band and Ku-Band coverage, and enables the combination of broad regional beams and high throughput spot beams that maximize throughput and spectral efficiency. It is designed specifically to meet Africa’s fast-growing communication and digital transformation demands, though to-date, many remote communities were unable to enjoy these benefits due to lack of reliable power supply. Until today.

Ignite Power has extensive and efficient solar power operations across Africa and has already connected 1.5 M people in off-grid areas and over 10,000 villages, to power through affordable solar-home systems. All basic home system packages include USB chargers, long-lasting lithium battery, life-prolonging charger, rechargeable radio, and fixed lamps.

Dan Zajicek, SpaceCom’s CEO said today: "Providing internet connectivity to rural areas in Africa is a challenge that we address as a priority. Our partnership with Ignite Power is a huge step towards making a change on a Pan-African scale. Together, no place is too remote for us to tackle. It is an honor to be able to make a difference in people’s lives and it is priceless to see the level of appreciation to something that seems trivial to most. This is only the beginning, we have many plans ahead".

"The combination of off-grid solutions and advanced communication systems is almost inevitable, as it allows for an immediate, affordable and reliable solution to one of the most significant challenges in Africa today", says Yariv Cohen, Ignite’s CEO. "Access to the internet has a tangible potential for impact on a huge scale. We are happy to join forces with a global technology leader such as Spacecom; Together we will advance the realization of this potential, and lead Africa to a brighter, more inclusive future".

14 October 2020: The Africa Energy Forum will host a special presentation on 21 st October at 9am (UK time) by EMROD CEO and Founder Greg Kushnir, demonstrating the world’s first ever long-range wireless transmission project, currently operating in New Zealand.

EMROD has developed the world’s first commercially viable long-range, high-power, wireless power transmission as an alternative to existing copper line technology.

Emrod’s technology works by utilising electromagnetic waves to safely and efficiently transmit energy wirelessly over vast distances.

“Being able to transmit high-power electricity without any cables is game-changing for the continent. It means barriers to energy-access are smashed and Africa could be fully electrified within ten years. This is the technology millions of people have been waiting for.” Simon Gosling, Managing Director, EnergyNet.

The company was founded by serial tech entrepreneur Greg Kushnir, who was determined to find a technology that can reduce power distribution costs, avoid outages and support renewable energy.

“We have an abundance of clean hydro, solar, and wind energy available around the world but there are costly challenges that come with delivering that energy using traditional methods, for example, offshore wind farms or the Cook Strait here in New Zealand requiring underwater cables which are expensive to install and maintain,” said Mr Kushnir.

“I wanted to come up with a solution to move all that clean energy around from where it’s abundant to where it’s needed in a cost-effective, eco-friendly way.”

Energy generation and storage methods have progressed tremendously over the last century but energy transmission has remained virtually unchanged since Edison, Siemens, and Westinghouse first introduced electric networks based on copper wires 150 years ago.”

By significantly reducing infrastructure costs, Emrod’s technology has the capacity to support remote communities such as in Africa and the Pacific Islands by providing access to cheap, sustainable energy to power schools, hospitals and economies.

“The data is compelling. We are talking about a potential 50 per cent increase in sustainable energy uptake, up to 85 per cent reduction in outages and up to 65 per cent reduction in electricity infrastructure costs due to the Emrod solution,” said Kushnir.

“Since announcing Emrod's technology we have had a high level of interest from energy distribution and engineering companies from across the globe. We are progressing with some exciting opportunities to improve energy access for remote communities in areas such as India, Africa and Island Nations, added Kushnir.

The company has achieved strong interest from electricity distributors with Powerco, New Zealand’s second-largest distributor deciding to invest in a proof of concept of the technology currently operational.

Kushnir commented; “The system we are currently building for Powerco will transmit a few kilowatts but we can use the exact same technology to transmit 100 times more power over much longer distances. Wireless systems using Emrod technology can transmit any amount of power current wired solutions transmit.”

More information about this session:

Event name: Africa Energy Forum 2020 (online)

Event dates: 20th October – 13th November 2020

Session date & time: 21st October, 09:00 (UK time/GMT)

Register: https://bit.ly/30YFJ4g

16 October 2020: Sunkofa Energy develops and operates solar mini-grids, aiming at giving access to energy to inhabitants in Africa living in off grid areas. Sunkofa Energy focuses on in-house operations, customer management, demand stimulation activities and training of local talents, targeting to provide people with the means to climb the energy ladder via innovative solutions related to electricity (refrigeration, milling, internet…).

Sunkofa Energy has successfully secured its first equity raise with Gaia Impact Fund. The funding will enable Sunkofa Energy to expand further in its core Sub Saharan African markets especially in Western & Southern Africa countries. This achievement will help the company expansion, targeting to provide access to electricity to more than 1 million Sub Saharan African people in the medium term. The demand for reliable, clean and affordable electricity in Sub Saharan Africa continues to grow, with over 600 million people lacking access to electricity, of which approximately 80% live in rural areas (according to the International Energy Agency).

The company has recently been awarded one of the biggest solar mini-grid projects in Western Africa by US development Financing Institution MCC (Millennium Challenge Corporation), aiming at deploying 40 solar mini-grids and providing electricity to more than 80,000 Beninese inhabitants. In other geographies, Sunkofa has an extensive project pipeline to be developed in the coming years.

“Sunkofa Energy is thrilled to be partnering with Gaia Impact Fund to bring Sub Saharan African rural population renewable energy. Our expertise and experience in rural electrification to deliver reliable and clean energy solutions focusing on productive uses combined with the knowledge and alignment with Gaia Impact Fund will help us become an enabler of economic and social growth in our operating countries ”, says Juan Garcia Montes, CEO and co-founder of Sunkofa Energy.

Hélène Demaegdt, President of Gaia Impact Fund, comments: “We are very happy to get involved in Sunkofa’s entrepreneurial adventure. We have been very impressed by the team's commitment in developing mini-grid projects and we are confident that they will pursue their objective to provide people with the means to climb the energy ladder via innovative solutions related to electricity. Undoubtedly a great alignment of values and purpose between us.”

“The Sunkofa team brings a unique skillset to the African mini-grid space”, says Guilhem Dupuy, Investment Director at Gaia Impact Fund. “Developing and operating mini-grids at scale will require extraordinary levels of precision in execution, but above all creativity and flexibility and we’re thrilled to support Sunkofa’s take on this challenge”.

Antoine Veyre, CFO and co-founder of Sunkofa Energy adds: “Throughout the investment process, the team at Gaia Impact Fund demonstrated the agility, creativity, and commitment Sunkofa Energy needs from its shareholders to navigate the unique challenges and opportunities that Africa offers. We are excited to begin this journey with Gaia Impact Fund.”

Finergreen acted as the exclusive financial advisor on this equity round and its Managing Partner Jean-Jacques Ngono explains: “We strongly believe in this very experienced team and the business model they have developed. We were honored to be involved in this first equity raise that will enable to extend their activities on the continent, along with a specialized core investor like Gaia Impact Fund.”

For this transaction, Asafo & Co. acted as the legal advisor to Sunkofa Energy and Numa Avocats to Gaia impact Fund.

Henri-Olivier Essienne, counsel at Asafo & Co. says: “The transaction confirms the relevance of pursuing, now more than ever, venture capital and private equity transactions in the renewable energy sector in Africa despite the covid crisis.”

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About Sunkofa Energy: Founded in 2018, Sunkofa Energy is a company created by an experienced team of professionals in the energy access sector with a cumulative experience of 20 years in projects in Sub-Saharan Africa. Sunkofa is taking a pioneering role in bringing new energy business models to energy access and applies its capacity to innovate and scale the mini-grid business in Africa. For more information please visit: www.sunkofa.energy.

About Gaia Impact Fund: Gaia Impact Fund is a French impact fund dedicated to energy access entrepreneurs. Gaia invests in startups and SMEs operating in Sub-Saharan Africa and South-East Asia, and active on various segments: solar kits, productive uses of electricity, mini-grids, commercial & industrial solar installations, cleantech. Gaia Impact Fund was created by a team of entrepreneurs specialized in renewable energy and social impact investing. Since 2017, Gaia has supported 10 innovative companies in emerging countries and is actively pursuing its investment strategy with strong social and environmental impact. For more information please visit: www.gaia-impactfund.com.

About Finergreen: Finergreen is an international financial advisory boutique specialized in the renewable energy sector (solar, wind, hydro, biomass and storage). Founded in 2013, the company has completed EUR 2,1 billion of transactions over more than 6 GW of assets. With a team of 50+ people based in Paris, Madrid, Budapest, Dubai, Singapore, Mexico, Abidjan and Nairobi, the company operates through 3 main segments: Project Finance, Mergers & Acquisitions, Strategic Advisory. For more information about Finergreen please visit: www.finergreen.com.

About Asafo: Asafo & Co. is an international law firm established to deliver a unique and integrated offering of world class legal services dedicated to Africa-related business. With a 150+ team of lawyers based in Abidjan, Casablanca, Johannesburg, London, Mombasa, Nairobi and Paris, the firm is involved in complex and far-reaching transactions, financings and dispute resolution matters in a broad range of sectors, including energy (conventional and renewable), infrastructure, natural resources (mining, oil and gas), telecommunications, as well as banking and financial services. Asafo & Co. regularly acts for governments, States, private investors, developers, commercial and development banks, development financial institutions and investment funds. For more information about Asafo & Co., please visit: www.asafoandco.com.

About Numa Avocats: Numa Avocats is an independent business law firm operating in Aix-en-Provence, Marseilles, Paris and Shanghai. Numa attorneys advise small-cap and mid-cap companies, international groups, entrepreneurs, managers and institutional entities in relation with complex and strategic transactions over all the aspects of business law, notably on M&A, private equity, financing, contracts, tax and employment matters. For more information about Numa Avocats, please visit: www.numaavocats.com.

19 October 2020: Early 2020, Triodos IM - through its Hivos-Triodos Fund - partnered with Switzerland-based AlphaMundi Group and anchored the USD 21 million AlphaJiri Fund. The fund targets SMEs in sustainable agriculture and renewable energy in East Africa and recently finalised its first equity investment in Amped Innovation.

Amped offers breakthrough affordable high-powered products for low-income, off-grid households across Sub-Saharan Africa. The company partners with distributors across seven countries in Sub-Saharan Africa, reaching over 60,000 low-income households. It supports productive use appliances, so that people can charge their phones, power their shops, preserve vegetables, or irrigate their crops.

Amped will use the investment to support the development of a new generation of highly efficient and affordable direct current appliances for low-income households, and to grow its sales, manufacturing, and engineering teams. This will further boost Amped’s growth as a B2B energy and appliance company and to deliver on its vision of energy access for all.

Dianah Irungu, Senior Associate at AlphaMundi: “We are thrilled to add Amped Innovation to the portfolio of AlphaJiri Fund. Backed by a highly skilled and innovative team, the company has made great strides in advancing access to energy for low-income households in Africa, by designing and building highly efficient and affordable products. We are confident that, with our support, the company will deliver on more pioneering products to allow consumers to move further up the energy ladder and ultimately improve their quality of life and reduce energy poverty.”

Karel Nierop, Fund Manager Hivos-Triodos Fund: ‘"Roughly 600 million people in Sub-Saharan Africa lack access to energy. Off-grid solutions are the best way to provide the majority of them with clean, affordable and reliable electricity. Amped is well-positioned to have a tremendous positive impact on energy access through its distribution model with local partners."

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About AlphaJiri Fund: AlphaJiri Fund provides debt, mezzanine debt and equity investments for SMEs, with an initial focus on East Africa. The fund is managed by AlphaMundi’s local team in Nairobi, Kenya. Triodos Investment Management provides support on governance and operations. Stiftung Abendrot, a Swiss sustainable pension fund, is also an anchor investor in the fund.

27 October 2020: Africa GreenCo Group, together with its Lusaka-based operating company GreenCo Power Services (together GreenCo), is delighted to announce the investment of USD 1.5m by Denmark’s Investment Fund for Developing Countries (IFU) and Private Infrastructure Development Group’s InfraCo Africa (InfraCo). This investment completes GreenCo’s operational establishment in Lusaka as an intermediary renewable energy buyer/supplier and power services provider and is a precursor to the 2021 capitalisation of our credit support for IPPs.

GreenCo’s transformative role is to mobilise significant private sector investment for renewable energy, to strengthen the national and Southern African Power Pool (SAPP) electricity markets, and to facilitate a shift away from the current single buyer model. The region has great renewable energy potential and is in urgent need for more energy generation to support economic recovery and provide clean and affordable energy to its citizens. GreenCo’s model offers key innovations in the architecture of the electricity market and achieves better value – with more electricity generation and improved security of supply – in partnership (rather than in competition) with established industry players. GreenCo and its investors are focused on supporting the Government of Zambia, as well as the governments of other countries in the SADC region, in the opening of their electricity markets. The company’s operations will contribute towards the implementation of the Government of Zambia’s vision for the electricity sector as set out in the National Energy Policy 2019 and subsequent new energy sector legal and regulatory framework. This represents an important step in scaling-up renewable energy investment to help mitigate climate change, improve security of supply, and increase efficiency in the power sector.

Zambian Minister of Energy, Honourable Matthew Nkhuwa states, “The operationalisation of GreenCo is a great example of national action, and indeed international cooperation, as we strive to deliver affordable energy for all. Notwithstanding the current global economic uncertainty due to the COVID-19 pandemic, it is important that we plan for the future, one where renewable energy helps drive sustainable social and economic growth in Zambia.”

Honourable Alexander Chiteme, Minister of National Development Planning, said, “Today, we need true paradigm shifts toward low-emission and climate-resilient sustainable development in order to reduce the negative impacts of climate change on sustainable development and growth of Zambia and the Southern African region.  We are delighted to be working with GreenCo and a number of Zambia’s key cooperating partners to ensure that new business models, innovation and systemic change is delivered on the ground and felt by those most in need. Through this model we can attract the significant amount of funding required to harness Zambia’s abundant renewable energy resources.”

CEO of IFU, Torben Huss said, “GreenCo is an innovative business model providing a solution that can reduce the financial risk when investing in renewable energy and consequently pave the way for more private investors, which are highly needed if Africa is to succeed in delivering affordable and green energy for all.”

Gilles Vaes, InfraCo Africa’s CEO, added that, “GreenCo’s initiative of intermediary power off taker and power trading company is highly innovative and will help the Zambian electricity sector prepare for the future, working together with ZESCO and other key sector stakeholders. The challenges of developing new renewable electricity production in Zambia are great and will require the combined efforts of initiatives such as GreenCo. We look forward to working with GreenCo in helping it to become operational”.

Managing Director of ZESCO, Victor Mundende said, “Innovative solutions such as GreenCo could play an important part in providing alternative offtaker participation in the Zambian ESI, to make new generation projects more easily bankable whilst encouraging the maturation of electricity markets to encourage electricity trade. We look forward to working with GreenCo to deliver a mutually beneficial business model.”

CEO of GreenCo, Ana Hajduka added, “We would like to take this opportunity to thank the Government of Zambia, our industry partners and particularly IDC, for their leadership role to date. Our sincere gratitude goes to ZESCO, the Department of Energy, ERB, OPPPI, the Zambian NDA/MNDP and EAZ, and the funders who have supported GreenCo to this point. Their continued support, plus the investments made by IFU and InfraCo Africa are invaluable for the future success of GreenCo. We commend our investors’ continued support of a partnership that delivers clean and affordable electricity to Zambia and, on expansion of GreenCo’s activities, to the region.”

GreenCo’s innovative business model was incubated with grant funding and strategic input from The Rockefeller Foundation, Convergence and the P4G. GreenCo also benefits from the support of SADC PPDF via the Development Bank of Southern Africa and USAID’s Power Africa, of which Africa GreenCo is a private sector partner. Additionally, in December 2018, the Board of Agence Française de Developpement (AFD) approved the provision of a guarantee by AFD to GreenCo. This follows the approval of a guarantee by the European Commission in June 2018 through the European Fund for Sustainable Development (EFSD) under the EU External Investment Plan.

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About IFU: IFU, the Danish Investment Fund for Developing Countries, is an independent government-owned fund offering advisory services and risk capital to companies doing business in developing countries and emerging markets. Investments are made on commercial terms with the aim of creating economic and social progress as well as supporting the Sustainable Development Goals. For more information please see: https://www.ifu.dk/en/about-ifu/.

About InfraCo Africa (PIDG): The Private Infrastructure Development Group (PIDG) is an innovative infrastructure development and finance organisation which encourages and mobilises private investment in pioneering infrastructure in the frontier markets of sub-Saharan Africa and south and south-east Asia to promote economic development and combat poverty. PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 157 infrastructure projects to financial close and provided 209 million people with access to new or improved infrastructure. PIDG is funded by six governments (the UK, the Netherlands, Switzerland, Australia, Sweden, Germany) and the IFC. PIDG TA can provide technical assistance and capital grants to the PIDG Companies to meet a range of needs associated with an infrastructure project’s lifecycle. PIDG TA can also provide up-front viability gap funding grants to support PIDG projects that require concessional funding to make a project with strong development impact financeable. For more information please see: www.pidg.org.

InfraCo Africa is part of the Private Infrastructure Development Group (PIDG). InfraCo Africa seeks to alleviate poverty by mobilising private investment into high-quality infrastructure projects in sub-Saharan Africa’s poorest countries. It addresses the risks and costs of early-stage project development: funding teams of experienced developers and providing risk capital to those projects which need the financial commitment and leverage that InfraCo Africa can bring. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO). For more information please see: www.infracoafrica.com.

About GreenCo: Africa GreenCo Group via its operating entity GreenCo Power Services Limited acts as an intermediary offtaker and service provider, purchasing power from renewable IPPs and selling that electricity to utilities and private sector offtakers (i.e. commercial and industrial users) and markets of the SAPP. GreenCo will mitigate the risk of purchaser default through an ability to secure alternative buyers or through short-term trading on the SAPP electricity markets. Through its participation in competitive power markets, GreenCo will promote cross-border power transactions and a more dynamic and liquid short-term power market. Through its activities, GreenCo will increase the supply of, and demand for, finance for energy projects, and mobilise private sector capital more quickly towards critical and transformative capacity addition. For more information please see: https://africagreenco.com/.

30 October 2020: For the first time, Eskom CEO André de Ruyter and Tshifhiwa Bernard Magoro, Head of South Africa’s IPP Office will Co-Chair an intimate boardroom on 2 nd November during the Africa Energy Forum.

Programme Director of the Forum Shiddika Mohamed commented, “The pair have been in discussion for a number of weeks about the meeting, and have stressed how important it is to sit down together with investors to discuss how this relationship will work in the coming years.

The past months have seen a significant shift in relations between the two sector stakeholders, with Eskom coming out in full support of the regulators’ approval of the IPP Office’s 11.5GW Round Five procurement programme. This move came directly from the Eskom CEO who continues to address the challenges faced by the national utility with clear messaging.”

The boardroom on 2 nd November is an opportunity for both leaders to sit down with investors and discuss how the relationship will move forward.

This boardroom will be moderated by John Smelcer, Business Development Director at Globeleq, and is chaired by both the IPP Office Head and Eskom CEO, who welcome alongside them the leadership teams of both organisations.

Event: ESKOM & IPP Office Boardroom at the Africa Energy Forum

Time and Date: Monday 2nd November | 12:00 GMT

Please note: Due to the nature of this boardroom and to enable an inclusive dialogue, this session is limited in numbers

Attendee registration: https://bit.ly/3iblExl

Media Registration: https://bit.ly/3mzdYru

Media Enquiries: Amy Offord | This email address is being protected from spambots. You need JavaScript enabled to view it.

• Following the close of its $4 million Series A funding round in June, Sun Exchange momentum continues with its expansion into sub-Saharan Africa.
• The Phase 1 crowdsale opens this week for a multiphase solar project to power Nhimbe Fresh, a premier exporter of fresh produce in Zimbabwe.

10 November 2020: Sun Exchange, the world’s first peer-to-peer solar leasing platform, today announced its expansion into sub-Saharan Africa with the launch of the crowdsale for Phase 1 of a multiphase 1.9 megawatt (MW) solar-plus-storage project for Nhimbe Fresh, a premier exporter of fresh produce in Marondera, Zimbabwe. This will be the largest Sun Exchange solar installation to date and the first outside South Africa.

The announcement demonstrates swift progress towards sub-Saharan Africa expansion goals set forth in June, when Sun Exchange announced the close of a $4 million Series A funding round after securing a $3 million investment from ARCH Emerging Market Partners Limited’s Africa Renewable Power Fund (ARPF). 

The multiphase solar and battery project will power Nhimbe Fresh packhouse and cold store facilities (phase 1), pump sites (phase 2), and Churchill Farm (phase 3). The introduction of continuous, reliable power, at a lower cost than running diesel generators, is forecast to reduce the Nhimbe Fresh facilities’ energy costs by more than 60 percent per year and carbon emissions by more than one million kilograms per year. 

The solar project marks a number of other important firsts for Sun Exchange, including:

• First project with energy storage capacity: The three project sites will be integrated with a 3.9 MWh battery system, enabling Nhimbe Fresh to continuously operate on solar energy alone. This alleviates the burden of grid outages, potentially saving hundreds of thousands of US dollars (USD) a year in lost revenue and additional operating overheads. 
• First USD-pegged, fixed lease price project: To mitigate risk of currency fluctuations, solar cells will be leased to Nhimbe Fresh at a USD-pegged fixed price, with a forecast internal rate of return (IRR) of 12.33% for solar cell owners, the highest of any Sun Exchange project to date. 

Working with United Exports, Czon and Global Fresh, Nhimbe Fresh exports blueberries, raspberries, strawberries, stone fruit, snap peas and snow peas to major international grocery retailers in the United Kingdom, European Union, United Arab Emirates and South Africa. In April 2019, the company floated a $2.9 million convertible five year bond, which was fully subscribed by leading African asset manager, Old Mutual Investment Group. 

Nhimbe Fresh maintains a strong focus on sustainability and uplifting surrounding communities. The company runs an outgrower scheme, working with 250 smallholder farmers who receive specialised training and support and gain vast access to export markets. The company also provides clinic and childcare facilities for employees, sports funding and participates in a programme to empower youth in agriculture. 

Edwin Masimba Moyo, Chairman and sole shareholder, Nhimbe Fresh, said, “At Nhimbe Fresh, we recognise and embrace our interdependence on our surrounding communities and the environment. Our vision is to pursue a purpose greater than ourselves and to pioneer new, profitable ways of doing business through sustainability and environmental responsibility. Going solar through Sun Exchange is a significant step towards that vision, minimising our energy costs and climate impact, while strengthening our resilience and business continuity by enabling us to continue operations during power outages.”

Abraham Cambridge, CEO & Founder, Sun Exchange, said, “Agriculture accounts for approximately 23 percent of sub-Saharan Africa's GDP, yet this critical sector faces immense challenges including unreliable power supply, rising electricity costs, climate-induced drought and limited access to finance for clean energy. Sun Exchange directly addresses those challenges by facilitating access to extremely simple, affordable, reliable solar power.”

Davies Musoso, Head of Alternative Investments, Old Mutual Investment Group Zimbabwe, said, “Nhimbe Fresh stands out as a leader and model of sustainability and resilience, having built a thriving and reputable agriculture business by taking a conscientious, climate- and community-smart approach.”

Through its online platform, Sun Exchange sells solar cells to its global community of more than 19,000 Sun Exchange members across 168 countries, and then leases the cells to schools, businesses and other organisations in sub-Saharan Africa. Solar cell owners offset their carbon footprint while earning a rental income stream from the clean electricity generated. In turn, businesses and organisations can go solar at no upfront cost, minimising their energy costs and climate impact.

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About Sun Exchange: Sun Exchange is the world’s first peer-to-peer solar leasing platform. Utilising financial innovation and the power of the crowd, Sun Exchange makes the environmental, social and economic benefits of solar power accessible and affordable for all. For more information visit www.thesunexchange.com.

About Nhimbe Fresh: Nhimbe Fresh is a premier African exporter of blueberries, raspberries, strawberries, stone fruit, snap peas and snow peas, pioneering new, profitable ways of doing business through sustainability and environmental responsibility. For more information visit https://nhimbefresh.com/.

11 November 2020: Camco Clean Energy (Camco) had been approved as an accredited entity by the Green Climate Fund (GCF) at the 27th Board meeting being held this week.

As an accredited entity, Camco can now put forward proposals to the Fund and then oversee, supervise, manage and monitor these proposals when approved.

The GCF was set up by the United Nations Framework Convention on Climate Change (UNFCCC) in 2010 and is the world’s primary mechanism for helping developing countries reduce their greenhouse gas emissions and enhance their ability to respond to climate change.

The GCF’s second replenishment has recently exceeded US$10 billion of pledges, and the Fund has already committed over US$7 billion for climate action, with accredited entities ranging from the world’s largest development banks to micro organisations. According to its accreditation status, Camco will be able to propose private sector projects and programmes based in any developing country that are up to US$250 million in size and are low to medium risk.

Commenting on the GCF Board’s approval, Geoff Sinclair, Managing Director at Camco, said: “We are delighted and proud to be welcomed as a GCF accredited entity and are committed to supporting its aim of creating a paradigm shift in climate action and driving forward the goals of the Paris Agreement.

“It’s taken two years and a lot of hard work to get to this point and this marks a huge achievement for us and I would like to thank the GCF Secretariat, Accreditation Panel and Miles Austin at Advisory 42 for working with us. Now it’s time to begin work on presenting several exciting and innovative concepts notes for the GCF’s consideration, all of which will support the kind of active engagement of the private sector that is critical for catalysing wide-scale climate action.”

Camco has been providing innovative financial solutions and management services to enable renewable energy development and deploy climate finance for more than 30 years. The company is based in offices in Accra, Helsinki, Johannesburg, London and Nairobi, and has on-the-ground experience and world-leading financial expertise in originating, developing, financing and implementing renewable energy and electrification projects in developing and established markets across the world.

Since 2015, Camco has been the investment manager of the UK Government-funded Renewable Energy Performance Platform, a £148 million fund to support the growth of small scale, distributed renewable energy in countries across Africa.

“Being a relatively small company gives us the freedom to be fast-acting and nimble, which are important qualities for developing the small and distributed renewable energy markets in developing countries, which often falls outside the scope of many of the larger GCF-accredited entities,” added Sinclair.

“Combined with our diverse team’s experience in finance and investment, risk management, development, engineering, policy, and sustainability, we have every confidence that we will prove to be a very useful new tool in the GCF toolbox.”

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About the Green Climate Fund: The Green Climate Fund (GCF) is the world’s largest dedicated climate fund. GCF’s mandate is to foster a paradigm shift towards low emission, climate resilient development pathways in developing countries. GCF has a portfolio of over USD 6 billion in projects and programmes across more than 100 countries. It also has a readiness support programme to build capacity and help countries develop long-term plans to fight climate change. GCF is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) and serves the 2015 Paris Agreement, supporting the goal of keeping average global temperature rise well below 2 degrees Celsius.

About Camco Clean Energy: Camco Clean Energy (Camco) is an FCA-authorised and regulated fund manager that specialises in climate finance and meaningful sustainable development impact in emerging markets. Its long-established position within Africa’s renewable energy sector enables the company to provide project developers and sponsors with a trusted combination of global access and local presence, enabling them to source the right financing solutions to develop and build projects.

Camco was formed in Nairobi over 30 years ago and, since then, has provided creative finance solutions to 180 projects worth US$15 billion.

12 November 2020: With a $30 Million Investment for Sub-Saharan Africa, Green Climate Fund joins a Coalition of Investors and Donors to protect the Progress made in achieving Universal Energy Access.

This week, the board of the Green Climate Fund (GCF) approved a $30 million investment in the Energy Access Relief Facility, a fund to support off-grid energy companies through the COVID-19 pandemic. As a pioneer in the off-grid energy access sector, Acumen helped catalyze a global alliance of investors and donors to make this fund a reality. This support from GCF marks a major milestone in this critical effort to sustain the sector.

Over the last decade, off-grid energy companies have delivered clean, renewable, affordable power to 470 million people. The pandemic-induced economic crisis has shaken these companies’ foundations, putting their progress at risk and thereby threatening off-grid households’ access to electricity—as well as the potential access for the 770 million still waiting for energy. The crisis also threatens the ability of the sector as a whole to achieve SDG7—universal clean energy access—and the many other SDGs that depend on energy access. 

Since March, Acumen, a longstanding partner of GCF, has helped galvanize a sector-wide coalition of investors, donors, and advisors to respond to COVID-19’s effects on this industry and protect the progress of energy access enterprises in sub-Saharan Africa and South Asia. The energy access sector has seen demand and turnover decline, staff layoffs increase, and business closures hit nearly a third of the market. As the second wave of COVID-19 cases advances, there seems to be no end in sight for these young businesses struggling to serve their customers and keep the lights on. 

Through its partnership with Acumen, GCF’s investment will anchor the Energy Access Relief Facility, a targeted $100 million concessional debt facility that blends philanthropic and investment capital to offer low-interest loans to cover companies’ short-term liquidity needs. The goal of the Energy Access Relief Facility, managed by SIMA Funds, is to both maintain existing off-grid energy services and life-saving jobs that will be required if there is to be a future for  the energy access sector. 

Acumen has been investing towards bringing off-grid energy to low-income people since 2007. And we won’t stop now. We cannot stand by to watch these companies’ progress and impact deteriorate in the wake of a global crisis. Instead, Acumen stands undeterred with a hard-edged hope. In this pivotal moment of crisis, it is the responsibility and the privilege of those committed to the sector to act. Over the course of the last nine months, we have been consistently inspired by the way the many players in this sector have rallied together to do so. Working hand-in-hand around the globe, at all hours and for weeks on end, this collaborative effort—unlike anything we’ve seen before—to develop this facility was born with the companies and their customers in mind. Acumen could not be more excited to partner with GCF in taking this great leap forward on the journey to energy access for all.

• The Off-Grid Market Development Fund (OMDF) aims at increasing access to electricity via off-grid solar energy solutions, from solar lamps to entry-level Solar Home Systems (SHS);
• OMDF launches a Results-Based Financing (RBF) grant program with first submission window for companies from 28 October to 8 December;
• In parallel, OMDF is providing credit solutions to distributors and financial institutions active in the off-grid solar sector;
• OMDF is managed by Bamboo Capital Partners in partnership with Société Générale Madagasikara, which will host the funds and provide the financing.

16 November 2020: Bamboo Capital Partners (‘Bamboo’), the impact investing platform, has been appointed by the Government of Madagascar and the World Bank as the international fund manager for the Off-Grid Market Development Fund (‘OMDF’ or ‘the Fund’), a USD$40 million renewable energy access fund.

OMDF was established in April and launches its financing operations with a first window for proposals for results-based financing (RBF) from 28 October to 8 December. In parallel, OMDF will also provide debt financing to solar distributors and financial institutions that finance end-customers or solar distributors in Madagascar.

Société Générale Madagasikara has been appointed to host the OMDF funds and provide the financing.

OMDF aims at improving electricity access for households and SMEs in Madagascar through off-grid solar energy solutions. In 2020, it is estimated that less than a quarter of the Malagasy population has access to electricity. Rural areas of the country are unequally electrified, with electrification rates around 5%. Madagascar offers a potential customer base of 2.5 to 5 million households for solar lamps and market entry solar home systems. The Fund will target companies that provide Malagasy households with quality products that are Lighting Global / VeraSol certified.

The Fund was initiated by the Government of Madagascar, with funding from the World Bank. Bamboo’s partnership with Société Générale Madagascar combines the local market knowledge of Société Générale Madagascar with Bamboo’s deep expertise of managing international funds that invest in clean energy access solutions.

“Energy access remains a critical global challenge, with 800 million people without access to a reliable source of electricity. This problem is particularly acute in Madagascar, where access to electricity is a challenge for the large majority of households, especially those in rural areas of the country,” said JeanPhilippe de Schrevel, Founder and Managing Partner of Bamboo Capital Partners. “OMDF builds on our decade of experience investing in the renewable energy sector and we are looking forward to collaborating with the Government of Madagascar, the World Bank and Société Générale Madagascar to provide clean, reliable and decentralized sources of energy to the underserved Malagasy population.”

The Fund will offer both an RBF facility and a credit line for off-grid solar companies and financial institutions active in the off-grid solar sector.

RBF grants support off-grid solar distributors in developing their operations in Madagascar. The grants subsidize companies that offer quality products and services, with additional incentives for those offering end-customer financing solutions via pay-as-you-go models or through MFIs. This facility will also help new market participants overcome entry barriers through a partial prepayment of the RBF grant. OMDF will accept grant proposals from 28 October to 8 December 2020 and again from early 2021.

OMDF’s credit offering specifically finances working capital, stock building of quality products and endconsumer financing. It will also contribute to create credit history in Madagascar to attract further private sector financing.

LEAD Project Coordinator, Jacquis Randriamahazomana, said: "OMDF aims to improve access to electricity for households, especially those scattered, far from the grid, and for SMEs, through the use of solar products in Madagascar. The project will thus support the main objective of the Government of Madagascar's energy policy, namely "to ensure universal access to reliable, sustainable and modern energy services at an affordable cost" in line with the implementation approach of prioritizing socially equitable renewable energy solutions".

Zdenek Metelak, Chief Executive Officer of Société Générale Madagasikara, added: "Société Générale Madagasikara and the entire Société Générale Group are extremely honored to contribute to this initiative. This large-scale project is perfectly in line with our commitment to the development of renewable energy, which is part of the Société Générale Group's Grow With Africa program. We are thus committed to energy operators who support renewable energy projects and energy inclusion of populations.”

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About Bamboo Capital Partners: Bamboo Capital Partners (“Bamboo”) is an impact investing platform founded in 2007 by Jean-Philippe de Schrevel which provides innovative financing solutions to catalyse lasting impact. Bamboo bridges the gap between seed and growth stage funding through a full suite of finance options – from debt to equity – which it activates unilaterally or through strategic partnerships. Bamboo aims to generate lasting impact and improve the lives of the world’s most marginalized communities while delivering strong financial returns. Since its inception, Bamboo has raised over $400m for developing countries, positively impacting over 184 million lives and supporting 45,000 jobs, including 15,900 jobs for women, through its investments in over 30 countries. The firm has a team of 30 professionals active across Europe, Latin America, Africa and Asia. For more information, please visit www.bamboocp.com or follow @bamboocp.

About Société Générale Madagascar: Société Générale Madagasikara bank is a subsidiary of the Société Générale banking group. Société Générale supports 31 million individual and corporate customers worldwide and places innovation and digital technology at the heart of its business to continuously improve the services it offers. Present in Madagascar for more than 20 years, Société Générale Madagasikara combines financial strength with a sustainable growth strategy, with the ambition to be the relationship bank of reference in its markets, close to its customers, chosen for the quality and commitment of its teams. Based on a diversified universal banking model, Societe Generale Madagasikara supports all categories of customers: corporate, SME/SMI, individual and wealth management customers as well as professionals and institutional investors. The bank currently has a relevant branch network of 59 branches, 5 Espaces Premier and 5 Business Centres throughout Madagascar and employs more than 900 staff. As a committed corporate citizen, Société Générale Madagasikara promotes, on a daily basis, support for education and professional integration, as well as support for the development of Malagasy youth through artistic, sporting and cultural patronage.

• CrossBoundary Energy is currently operating or delivering $57M in assets, serving 20 customers across 8 countries in Africa, including more than 40MW of fully financed solar PV and 10 MWh of battery storage projects.
• Transaction provides an exit for initial investors at 15% IRR and provides a powerful proof of concept for blended finance, returning a profit to the US Treasury on USAID’s catalytic firstloss contribution.
• $40M of new funding enables the scaling of CrossBoundary Energy’s commercial & industrial solar services to provide many more African businesses with access to cheaper, cleaner power.
• Support from institutional investors and ongoing adoption by leading corporates highlights the viability and attractiveness of distributed generation.

17 November 2020: CrossBoundary Energy (CBE) today announced the exit of its first fund at a 15% net IRR to investors. ARCH Emerging Markets Partners’ Africa Renewable Power Fund (ARCH ARPF) is providing $40M in new equity funding to exit initial investors and support CrossBoundary Energy to continue to develop, construct and operate distributed commercial & industrial (C&I) solar projects that will provide businesses across Africa with access to cheaper, cleaner power.

This exit and new investment is a powerful endorsement for the role of distributed renewables in Africa and the potential of blended finance in unlocking new asset classes.

First, the substantial raise of new capital highlights the exciting potential of distributed solar to provide more reliable and affordable power to African businesses. Over the last five years, CBE has pioneered the creation of a C&I solar sector in Africa. CBE’s solar-as-a-service model allows corporate customers to avoid the upfront capital expenditure and technical risk that can be a barrier to solar adoption. Instead, customers enter into long-term solar service agreements under which CBE (in partnership with local developers and solar contractors) finances, installs and operates solar assets to provide customers with cleaner and cheaper power. CBE signed the first distributed solar power purchase agreements with corporate customers in Kenya, Rwanda, Ghana, Madagascar, Uganda, Sierra Leone, Zambia and Nigeria, and has built a strong client base with both multinational companies, including Unilever, Diageo, Coca-Cola distributors, Rio Tinto, Heineken, AB InBev, Actis, and leading local companies including Kasapreko and Xflora Group. CBE is now operating or delivering $57M in assets, serving 20 customers across 8 countries in Africa, including more than 40MW of fully financed solar PV and 10 MWh of battery storage projects.

Second, the exit of CrossBoundary Energy I (CBE1) is also a powerful demonstration of the potential of blended finance to unlock new and impactful asset classes. CBE1 was closed in November 2015 as Africa’s first dedicated fund for C&I solar. It was also a prototype for a new blended finance approach to renewables in Africa. USAID’s Power Africa initiative contributed $1.3M in the form of a repayable grant to catalyse private investors into the fund. USAID’s subordinated equity contribution attracted additional equity investors, effectively resulting in leverage of matching private capital of more than 6.0x. At the close of this transaction, this leverage increased to more than 30x and USAID’s blended finance contribution of $1.3M has now been repaid to the US Treasury with a return of 5%. CBE1 also benefited from grant support from OPIC (now the US International Development Finance Corporation) and the Shell Foundation, in partnership with the UK’s Foreign, Commonwealth & Development Office, which allowed the fund to scale its operations.

Pieter Joubert, Chief Investment Officer, CrossBoundary Energy says, “We are incredibly grateful for the early stage backing we received from our partners and investors such as Blue Haven Initiative, Ceniarth, Slocum Investments, Treehouse Investments and others, who trusted in our vision to bring cheap, clean energy to businesses across the continent and continued to support and work with us to realise that vision. In terms of what comes next, partnering with an industry-leading investor like ARCH ARPF highlights the proven viability of captive commercial and industrial solar projects in Africa. We’re very excited to work with ARCH ARPF to continue providing Africa’s leading businesses with cheaper, cleaner, more reliable power at no upfront cost. This commitment by ARCH ARPF represents the next phase of a larger $100M transaction which will allow us to take the C&I sector to scale across Africa, and in doing so, further reduce energy costs for our customers, create additional jobs within the solar sector, and significantly reduce carbon emissions.”

William Barry, Managing Director, ARCH ARPF, says, “We believe that distributed renewables will be an important part of the energy future in Africa. The lower cost for solar and storage means that companies like CrossBoundary Energy can offer retail consumers reliable, cost-effective solutions to their electricity needs. At ARCH ARPF, we aim to partner with strong management teams and invest in scalable business models that offer compelling alternatives to their customers, including in the C&I space. CBE has been able to grow a portfolio of high-quality assets and their growth continues to rapidly accelerate. We are excited to support them to scale.”

Mark Carrato, Coordinator of the U.S. Government-led Power Africa initiative, says, “Power Africa supports enterprise-led market innovations to address Africa's energy challenges. CrossBoundary Energy's model of distributed renewables to accelerate access to cheaper and cleaner power is an excellent example of this. In 2015, Power Africa made a repayable $1.3 million first-loss grant contribution to catalyze the creation of the CrossBoundary Energy I Fund. While the grant initially unlocked six times that amount in matching private capital, it has now leveraged 30 times our contribution from private investors. Moreover, the initial $1.3 million plus 5% interest has been returned to the U.S. Treasury. This success is a validation of Power Africa’s emphasis on helping catalyze the private sector to provide life-changing access to electricity across sub-Saharan Africa.”

Sam Parker, CEO of Shell Foundation, says “The mission of the Shell Foundation is to build investable businesses that enhance access to energy for low-income communities across Africa and Asia. CrossBoundary Energy is having a major impact through the provision of lower cost, cleaner and more reliable power to African enterprises. We are proud that our early stage support helped them reach commercial viability and scale.”

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About CrossBoundary Group: The CrossBoundary Group’s mission is to unlock capital to make a strong return and a lasting difference in underserved markets. It has over 100 professional staff and offices in Bangkok, Ghana, Kenya, Mali, Nigeria, Senegal, South Africa, Tunisia, UAE, UK and USA.

CrossBoundary Advisory provides a range of due diligence and transaction services. It has advised on over US$750 million of closed transactions, across a range of sectors in underserved markets globally. CrossBoundary Energy was launched in 2015 and is SubSaharan Africa's leading investment platform for C&I solar. CrossBoundary Energy Access is the Group’s latest investment platform and provides blended project finance for mini grids in Africa.

For more information, please visit www.crossboundary.com/energy/.

About the ARCH Africa Renewable Power Fund: Founded in 2018 as a partnership between African Rainbow Capital Proprietary Limited and JCH & Partners LLP, ARCH Emerging Markets Partners Limited is an emerging markets investment advisory firm specialising in private equity opportunities with an initial focus on energy and logistics in developing economies. ARCH ARPF is a dedicated African renewable energy fund whose mission is to create long term value for its stakeholders while addressing the African market’s growing demand for bankable, de-risked electricity generation. ARCH ARPF’s team has (prior to launch of ARCH ARPF) collectively spent decades originating and managing private sector power investments across Africa, from early-stage development through operations. ARCH ARPF, whose investors include institutional investors and DFIs, has been partly funded by the European Union. For more information, please visit www.archempartners.com/africa-renewable-power.

18 November 2020: On November 4th 2020, GIZ and Energy 4 Impact announced the start of a new collaboration under the Water and Energy 4 Growth initiative. Energy 4 Impact is a non-profit organisation which accelerates the growth of locally-led businesses in the energy access space, to stimulate economic growth and employment in off-grid rural communities in sub-Saharan Africa. Its work involves promoting social equity, building climate-resilient economies, and affecting sustainable development outcomes in disadvantaged communities.

On November 4th 2020, GIZ and Energy 4 Impact announced the start of a new collaboration under the Water and Energy 4 Growth initiative. Energy 4 Impact is a non-profit organisation which accelerates the growth of locally-led businesses in the energy access space, to stimulate economic growth and employment in off-grid rural communities in sub-Saharan Africa. Its work involves promoting social equity, building climate-resilient economies, and affecting sustainable development outcomes in disadvantaged communities.

The Water and Energy for Food Grand Challenge (WE4F) is a joint international initiative to improve energy and water efficiency in the agricultural sector through environmentally sustainable innovations. This collaboration with Energy 4 Impact will address critical shortcomings in traditional farming methods. Farming in sub-Saharan African is typically characterised by unmechanized farming systems reliant on rainfed production. Smallholder farmers struggle with insufficient knowledge of efficient cropping techniques, agronomic and horticultural practices, limited access to farm inputs such as seeds and fertiliser, and a lack of appropriate storage facilities, technology and market data, digital services and mobile finance.

The lack of irrigation is both a symptom and cause of such problems. This new initiative will put three collaborative programmes in place in order to provide innovative clean energy solutions:

• Solar Irrigation for Smallholder Farmers in Least Developed Regions of Tanzania will boost the livelihoods and resilience of Tanzanian smallholder farmers through holistic support services, access to finance and information and increasing the uptake of small-scale solar irrigation equipment.
• The Green energy and finance to energize food production in Senegal and Benin project is split into separate work programmes for each country. Both programmes aim to improve the livelihoods and resilience of paddy rice farmers and processors through access to solar irrigation and processing technologies, technical assistance and holistic support services.

 Making farmers aware of the advantages of solar-powered irrigation is at the heart of this initiative: the programmes will improve their solar market knowledge, provide information on how energy efficiency improves profitability, demonstrate business models for scaling up, co-ordinate linkages with financial institutions for loans and suppliers for pay-as-you-go services, and furnish technical assistance. Yet beyond the acquisition of small-scale solar irrigation units, WE4F will take a holistic approach to ensure the long-term efficacy of such programmes. Therefore, the support to farmers from GIZ and Energy 4 Impact will also encompass advice on agronomy, productive uses of solar energy in post-harvest processing and routes to market.

It is anticipated that such innovative clean energy solutions will boost farm profitability, local markets and the wider agricultural sector. For smallholder farmers, it will lead to increased productivity, higher incomes, increased resilience to drought, stronger agronomic and commercial skills, diversification of crops and easier access to finance. We also envisage a ripple effect on local markets: governments in the target regions have made a commitment to support this initiative by facilitating agricultural extension work. The three programmes will also generate a wealth of knowledge that will help galvanize the use of renewable energy within the agricultural sector.

• Bboxx secures loan with FEI OGEF to accelerate energy access in the Democratic Republic of Congo.

19 November 2020: Bboxx, a next generation utility, has secured a $4 million loan from the Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI OGEF), a debt fund managed by Lion’s Head Global Partners (LHGP).

The loan will accelerate Bboxx’s operations in the Democratic Republic of Congo (DRC) across Kivu, Ituri and Tshopo provinces with ambitions to expand further in the country. Currently, only around 19% of the DRC population have access to electricity, and for those that do have access, electricity can be unreliable1.

The DRC is already a core market for Bboxx, who manufacture, distribute and finance decentralised solar powered systems in developing countries. The company has positively impacted many lives through access to clean, reliable and affordable energy – and this new funding will provide the opportunity to further increase Bboxx’s impact in the DRC. Earlier this year, Bboxx announced a memorandum of understanding (MoU) with the DRC Government, with the aim of bringing clean energy to 10 million citizens, equivalent to 10% of the population.

This debt financing from FEI OGEF builds on the Fund’s $8 million loan made in May 2019 to turbocharge Bboxx’s energy access plans in Rwanda. FEI OGEF is a USD$100 million blended finance debt fund that provides predominantly secured financing to support the growth of innovative companies in the off-grid energy sector, and it is part of the African Development Bank (AFDB) flagship initiative, Facility for Energy Inclusion.

This deal comes at a time of significant growth for Bboxx, as this year it celebrates its 10th year in business and reached a milestone of transforming over one million lives through access to energy.

Mansoor Hamayun, CEO and Co-Founder of Bboxx, commented: “Building on our productive relationship with FEI OGEF and Lion’s Head Global Partners highlights investor confidence in our business model. It is a positive step in the right direction in securing more funds to help tackle the global energy access gap and make progress towards meeting UN Sustainable Development Goal 7 – energy for all.

“We have substantial operations and a proven track record in the DRC, having signed an important MoU with the DRC government at the beginning of the year. As we embark on the next phase of our ambitious growth journey, we look forward to putting these funds to good use by helping to transform even more lives and unlock potential through access to clean energy.”

Harry Guinness, Managing Director at Lion’s Head and OGEF Fund Manager, added: “The OGEF team remains impressed with Bboxx’s mission, technology and scale – and we are excited to expand our role in their growth in challenging markets by boosting operations in the DRC. This transaction was a real team effort – owing thanks to partners at the World Bank and local funders – and the collaboration and effort underscores OGEF’s commitment to increase debt financing in Africa.

“We look forward to continuing to contribute to Bboxx’s substantial achievements in expanding access to clean energy through much-needed scalable capital. This transaction sets another standard and we’re driven to adapt, learn and replicate it with borrowers in the sector across Africa.”

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About Bboxx: Bboxx is a next generation utility, transforming lives and unlocking potential through access to energy. Bboxx manufactures, distributes and finances decentralised solar powered systems in developing countries. It is scaling through forging strategic partnerships and its innovative technology Bboxx Pulse®, a comprehensive management platform using IoT technology. Through affordable, reliable, and clean utility provision, Bboxx is bringing people into the digital economy, creating new markets, and enabling economic development in off-grid communities and those living without a reliable grid connection. The company is positively impacting the lives of more than one million people with its products and services in over 35 markets, directly contributing to 11 of the 17 United Nations Sustainable Development Goals.

So far, Bboxx has deployed more than 350,000 solar home systems. Bboxx has over 800 staff across nine offices including in Democratic Republic of Congo, Kenya, Rwanda, and Togo, with its head office in the UK and its manufacturing operations in China. In 2019, Bboxx was the winner of the Zayed Sustainability Prize in the Energy category – testament to the way the company is making a meaningful difference to people’s lives around the world.

About FEI OGEF: FEI OGEF (www.ogefafrica.com) is a debt fund managed by LHGP Asset Management and part of the AFDB’s Facility for Energy Inclusion (FEI) which was launched to increase energy access across Africa. FEI OGEF received equity funding from the AFDB, NDF, KfW, the European Commission’s blended finance facility, the Global Environment Facility and All On, a not for profit set up to increase access to commercial energy products and services off-grid energy markets in Nigeria. FEI OGEF also received debt funding from the AFDB, All On, Calvert Impact Capital and the Prudential Insurance Company of America.

FEI OGEF was established to make power more affordable for low-income households by creating an efficient market-oriented and scalable transactions across Africa. The Fund focuses on lowering overall risks and costs for off-grid energy access companies by investing through tailored, flexible credit lines in foreign and local currencies to meet inventory, consumer finance and other working capital needs. FEI OGEF provides $2-$10m loans to companies in order to expand the role of local capital markets and ultimately increase access to reliable energy for households across the continent.

About Lion’s Head Group: Lion’s Head Group (www.lhgp.com) is a frontier market investment bank. Its core activities include financial advisory, capital raising and asset management. LHGP Asset Management (LHGP AM), is the FCA regulated asset management arm of the group and the fund manager of FEI-OGEF with $500m assets under management across market development (www.alcbfund.com) and energy infrastructure (www.feiafrica.com).

23 November 2020: The United States Government, through the United States Agency for International Development (USAID) and the Power Africa initiative, has awarded three companies in Madagascar a combined $1.2 million in grant funding to develop mini-grids that will bring electricity to more than 5,200 rural homes and businesses.  These grants are part of the U.S. Government’s $3 million effort to increase energy production and electricity access in Madagascar.  Since 2018, the initiative has helped more than 57,000 people gain access to electricity and will, by 2022, provide electricity to over 400,000 people.

Only 5% of Madagascar’s rural communities have direct access to electricity despite the country’s wealth in renewable energy sources like solar, wind, and hydroelectricity.  Access to remote regions can be difficult, which is why Power Africa has focused its efforts on solar home systems and mini-grid development, in conjunction with the Ministry of Energy, the Rural Electrification Agency (ADER), and the private sector.  Mini-grids are particularly critical tools to accelerate development in rural communities.  By increasing access to electricity, they enable businesses to adopt modern services and machines like irrigation pumps and cold storage that help businesses grow and create jobs.  Although Madagascar has strong expertise in developing mini-grids, many companies find it difficult to obtain financing.  Recognizing this funding gap as a key barrier to rural development, USAID and Power Africa, responded by issuing this grant opportunity. 

Power Africa launched the Madagascar Mini-Grid Development Grant Program in May 2020.  The grant, implemented by Power Africa’s Southern Africa Energy Program (SAEP), will support mini-grid developers who have obtained concessions from ADER but are struggling to secure funding to implement their projects; while developers with existing mini-grids are expected to use the grant to connect additional households to the grid.  This project supports the Government of Madagascar’s target to reach 50% electricity access nationally by 2023.

Seventeen companies applied for the grant.  Following a thorough review process, grants were awarded to: Autarsys Madagascar, Hydro Ingenierie Etudes Et Realisations (H.I.E.R), and Henri Fraise Fils & Cie.  Combined, these grants will bring electricity to more than 28,000 people in three regions of the country: Amoron'i Mania, Atsimo Andrefana, and Boeny. 

Autarsys Madagascar and Henri Fraise Fils & Cie will build hybrid mini-grids that combine solar panels and battery storage, while Henri Fraise Fils & Cie, will build a new 100kWp solar mini-grid.  H.I.E.R. will extend an existing hydro-powered mini-grid as part of the Presidential 100 Villages for Rural Electrification Project.

Under Power Africa, SAEP has targeted 11 countries including Madagascar to promote investment in the energy sector and help participating countries increase energy generation, transmission, and distribution.  Through this program, the United States is helping Madagascar reach its energy goals by supporting on-grid hydroelectric projects, off-grid solar home systems, and mini-grid development.  SAEP is also partnering with the School of Engineering at the University of Antananarivo to increase local expertise in mini-grid developments. 

In September 2020, Power Africa also awarded $240,000 to the French-Malagasy social enterprise Nanoé to power 35 rural health clinics serving 140,000 patients in northeastern Madagascar.

These projects are part of the U.S. Government’s effort to expand access to electricity in Madagascar but also fit into the larger development goals of reinforcing democracy and government capacity, strengthening commercial and economic ties, and promoting sustainable self-reliance.  To this end, USAID spent about $114 million last year on health, environment, energy, food security and humanitarian assistance in Madagascar.

26 November 2020: EDP is preparing to sponsor new clean energy access projects in five African countries through the A2E Fund. The third edition of this financing program has €500,000 and two new target locations.

The focus on projects promoting access to renewable energy in developing countries is one of the commitments that prompted EDP to roll out yet another edition of the A2E (Access to Energy) Fund. With a budget of half a million euros, this financing program was created to sponsor clean energy projects in Mozambique, Nigeria, Malawi, and, for the first time, Angola and Rwanda.

In this third edition - aimed at both for-profit and non-profit organizations - the Fund will give each project €25,000 to €100,000. Applications open this Thursday, November 26, and run until January 10. The results will be announced in April 2021. Applicants will then have one year to implement their projects.

As in previous editions, the program's five priority areas are education, health, agriculture, business, and community. Evaluation criteria include social impact, partnerships, sustainability, scalability, and financial viability.

With this new edition of the A2E Fund, EDP reaffirms its commitment to sustainability and the fight against energy poverty, which still affects more than one billion people. Since it was launched in 2018, this financing program has received more than 260 applications and allocated about €1 million to projects that use renewable energies to bolster the social, economic and environmental development of communities in remote areas. It is estimated that the projects sponsored by this EDP program over the past three years - which are available here - have directly benefited the lives of over 55,000 people - and, indirectly, of more than one million people.

The choice of regions covered by this EDP fund is also related to the company's A2E strategy, which prioritizes investment in sub-Saharan Africa. Companies whose sustainability projects have received funding from EDP in recent years include SolarWorks!, which sells decentralized solar energy solutions in Mozambique and Malawi, and Rensource, which develops and manages mini solar energy grids in Nigeria. Such investments are in line with EDP's long-standing commitment to supporting renewable energy projects and sustainability solutions that ensure everyone's access to energy.

• The regulations and more information about the third edition of the A2E Fund are available here.

30 November 2020: The Economic Community of West African States (ECOWAS) held its fourth annual Sustainable Energy Forum (ESEF 2020) from 24-26 November 2020. Due to the coronavirus pandemic, this year’s ESEF was held virtually under the high-patronage of His Excellency, Mr. Jean-Claude Kassi Brou, President of the ECOWAS Commission.

The ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) instituted the ECOWAS Sustainable Energy Forum (ESEF) in 2017 to support the investment and policy initiatives of member states in the regional renewable energy sector. Since its inception, the forum has proven to be the largest sustainable energy gathering in the West African region.

Held in partnership with the Alliance for Rural Electrification (ARE), this year’s event attracted nearly 1,200 registrations including energy experts as well as diverse group of stakeholders, financial institutions and civil societies, highlighting the collective progress in achieving the ECOWAS regional sustainable energy targets while emphasising the remaining challenges faced by stakeholders in building a robust renewable energy and energy efficiency market.  

ESEF 2020 which coincides with ECREEE’s 10-year anniversary as a specialised institution with the mandate of promoting sustainable energy, raised awareness on the progress made by ECOWAS member states towards achieving sustainable energy targets for 2030.

Addressing the audience at the opening ceremony, the ECOWAS Commissioner for Energy and Mines, Douka Sediko described the renewable energy opportunities in the ECOWAS region as huge and called for a concerted effort in mobilising necessary finances. Commissioner Douka informed dignitaries that ECOWAS has put in place an enabling environment for investment in the region and therefore encourages businesses to always reach out to them for collaborations to expand the renewable energy and energy efficiency market.

Several high-level panel discussions were organised during the forum over three days – some of which focused on the role of off-grid renewables in achieving SDGs in the ECOWAS region. The Minister of Energy from Burkina Faso, Dr. Bachir Ismael highlighted the importance of renewable energy saying that the provision of electricity in rural areas goes hand-in-hand with growth of the local economy. This, he said will help the rural people in member states get themselves out of poverty.

The CEO of the Alliance for Rural Electrification (ARE) David Lecoque expressed his contentment as co-organisers of ESEF 2020 and is a testament of the increased cooperation with ECREEE. Mr. Lecoque described the ECOWAS region as a prime priority for ARE as 47% of its population continue to lack access to electricity. He noted that strong decentralised renewable energy sectors at the national level are key to achieving SDG-7 in the ECOWAS region and beyond. 

The Secretary General of RES4Africa Foundation, Roberto Vigotti also noted that “In order to achieve SDG-7, people should be placed at the centre of the agenda. He said that in order to lead an effective and inclusive green transition, we must build the next generation of investors, managers, entrepreneurs and technicians.”

Delivering his remarks, Head of Energy of Innovate UK, David Hytch said Innovate UK’s Energy Catalyst programme aimed at supporting businesses to develop highly innovative sustainable technologies and business models, thus accelerating the clean energy transition in Sub-Saharan Africa and South/South East Asia. He told delegates that Energy Catalyst accelerates the innovation needed to end energy poverty. Mr. Hytch highlighted that “crucial to delivering this is a true partnership between entrepreneurs in UK and West Africa that deliver innovative technology and business models that overcome the challenges faced in the region.”

During the Gender Session, ARE also launched its new gender publication with recommendations based on 17 case studies from members. The publication is entitled ‘Women Entrepreneurs as Key Drivers in the Decentralised Renewable Energy Sector (DRE): Best Practices and Innovative Business Models’. The publication highlights the essential role women play in energy access and sustainable socio-economic development in rural communities and serves as inspiration for innovative gender sensitive approaches to consolidate gender equality at each level of the DRE supply chain.

Addressing the closing ceremony, the Acting Executive Director of ECREEE, Bah F.M. Saho described the annual forum as another opportunity for member states to assess progress made at the national level towards achieving the 2020/2030 sustainable energy targets. He disclosed that less than 600 clean energy mini-grids are operational which falls far short of the regional target of 60,000 clean energy mini-grids by 2020 and 128,000 mini-grids by 2030. He therefore stressed the need to promote the deployment of clean mini-grids and stand-alone technologies to help increase and improve electricity access rate and appealed to partners and donors to collaborate with ECREEE to attain these objectives.

Mr. Saho thanked the co-organisers, their traditional partners and donors as well as participants for their time and efforts in making ESEF 2020 virtual forum a resounding success and thanked the ECOWAS Commission President, the ECOWAS Commissioners for Energy and Mines as well as Finance for their immense support on the implementation of ECREEE programmes. He also paid glowing tributes to ECREEE’s pioneer Executive Director, Mahama Kappiah, for his exemplary leadership and vision that led to the establishment and smooth functioning of ECREEE since its establishment.   

This year’s forum was co-organised by ECREEE and ARE, the decentralised renewable energy industry association delivering innovative clean energy solutions throughout Africa, and supported by GET.invest, a European programme which mobilises investments in decentralised renewable energy, supported by the European Union, Germany, Sweden, the Netherlands, and Austria. ESEF2020 is also supported by GIZ and the Austrian Development Cooperation and sponsors such as Energy Catalyst and RES4Africa.

Over 700 participants registered for matchmaking meetings, organised by GET.invest giving them an opportunity to connect with potential business partners, investors and relevant experts to advance projects through virtual interactions.

• 600 million people across Africa lack access to affordable, reliable, sustainable energy;
• Mini-grids are a disruptive new approach that could accelerate energy access;
• The International Energy Agency (IEA) forecasts that mini-grids will be the least cost method to connect at least 264 million people by 2030;
• But to unlock their potential, we need new ways of financing mini-grids. CrossBoundary Energy Access is open sourcing its project financing approach for mini-grids to accelerate universal energy access in Africa.

2 December 2020: CrossBoundary Energy Access (CBEA), Africa’s first project financing facility for mini-grids, is open sourcing their approach to investing infrastructure capital into mini-grids across Africa.

The UN Sustainable Development Goal 7 commits the global community to achieving universal energy access by 2030. Time is running out to achieve this goal. 600 million people in Africa still don’t have access to electricity.

Mini-grids are a new and disruptive way to achieve energy access. The International Energy Agency (IEA) forecasts that mini-grids will be the least cost method to connect at least 264 million people by 2030. Mini-grids are ready to scale in Africa but are not yet attracting the finance they need.

Mini-grids are infrastructure. Like traditional infrastructure, they form the basic physical systems of a nation—transportation, communication, water and power. They therefore need long-term, low-cost capital just like other infrastructure assets.  However, traditional approaches to infrastructure finance are hard to apply to mini-grids. Unlike traditional infrastructure, mini-grids are small, distributed and serve customers directly, rather than government off-takers. To finance these new and disruptive assets, the mini-grid sector needs new models of financing that allow infrastructure capital to flow into the underlying assets.

CBEA has developed a new model of project financingto enable this transformative shift in financing. To design and launch this model, CBEA worked with their partners Ceniarth, Camco Clean Energy, DOEN Foundation, Foley Hoag, Norton Rose Fulbright, PowerGen Renewable Energy, the Renewable Energy Performance Platform (REPP), Rockefeller Foundation, Shell Foundation, Standard Microgrid, and UK aid. Now, to accelerate energy access, this approach needs to be adopted more widely. However, project finance has high barriers to entry. Complex, detailed, and interlocking financial models and project contracts are required to create bankable projects.

To address this, CBEA is open sourcing the core components of its financing approach:

1. A white paper that sets out the financing structure and guiding principles, the typical challenges and risks encountered in implementing the structure in practice, possible improvements to the model, and recommendations for investors, developers, donors, and governments.
2. Term sheets for the project contracts and the corresponding project finance model, which will be made available in the February 2021.

CBEA is open sourcing their approach to mini-grid financing so others can use and improve on it.  CBEA believes the competition this poses to its future growth is far outweighed by the potential to achieve the goals CBEA and their partners share, which is to deliver affordable and reliable power for all by 2030.

Humphrey Wireko, associate principal at CrossBoundary Energy Access, said, “We’ve seen how the Open Source movement transformed the software industry. The best innovations in software now impact far more people, and far more quickly. We believe this radical approach to information sharing can do the same for financing energy access.”

According to Matt Tilleard, co-founder and managing partner at CrossBoundary, “This approach won’t be the best for every financier or mini-grid developer. But we do think that we have created valuable intellectual property in adapting traditional project finance for the distributed nature of mini-grid assets. We believe that we will accelerate access to energy globally by proactively sharing that knowledge, and more importantly, collaborating with others to improve on it.”

“We are excited to launch the open source initiative because we see finance as one of the critical building blocks the sector needs to scale. It ensures that our funding to CBEA unlocks maximum impact and it underpins the other sector-building work Shell Foundation has supported: developers to build and operate mini-grids, the African Mini-Grid Association (AMDA) to work with governments on innovative regulation for mini-grids, and the Universal Electrification Facility (UEF) to bring in the public capital the sector needs to scale” said Emma Miller, head of mini-grids at the Shell Foundation.

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About CrossBoundary Group: CrossBoundary Group’s mission is to unlock capital to make a strong return and a lasting difference in underserved markets globally. We have over 90 professional staff and offices in Accra, Bamako, Bangkok, Dakar, Dubai, Johannesburg, Lagos, London, Nairobi, Tunis, New York City and Washington D.C. CrossBoundary Advisory provides a range of due diligence and transaction services, across a range of sectors in underserved markets globally. CrossBoundary Energy was launched in 2015 and is sub-Saharan Africa's leading investment platform for C&I solar. For more information visit www.crossboundary.com.

About CrossBoundary Energy Access: CBEA was launched in January 2019, with funding from Ceniarth and Rockefeller Foundation as Africa’s first project finance for mini-grids.  CBEA invests long-term equity and debt into mini-grids through a project finance structure, delivering first time grid-quality power to rural households and businesses. For more information visit www.crossboundary.com/energy-access/.

3 December 2020: Rensource, a leading West African renewable energy services provider, announced today its entrance into the provision of Commercial & Industrial (C&I) solar with a project in partnership with the Norwegian impact investment company, Empower New Energy, to deploy a 700 KWp solar photo-voltaic plant to Nigeria´s largest egg producer, Premium Poultry Farms. The power plant, ground-mounted on Premium Poultry’s farm, will generate ca. 1 gigawatt hour of clean energy annually, save up to 25 000 tons of CO2 in its lifetime and contribute to Abuja´s fight against local air pollution.

This landmark project is one of the largest power purchase agreements for solar energy signed in the C&I sector in Nigeria and will represent the poultry industry’s largest single clean energy project. The power plant is expected to operate for at least 25 years, according to the power purchase agreement signed between the off-taker Premium Poultry and Empower.

“This solution for Premium Poultry Farms, Nigeria’s largest egg producer, demonstrates our ability to meet the energy needs of a diverse array of industrial customers. We are honored to supply affordable clean energy to further grow Nigeria’s critically important agricultural sector, while cutting emissions” said Ademola Adesina, founder and CEO of Rensource.

Premium Poultry Farms produces ca. 600 000 eggs daily and has its own feed mill, making it the country´s largest egg producer. The company prides itself in distributing and nourishing Nigerian families with quality eggs across the country. This project, which is due to commence operations in December 2020, will have an important footprint in terms of sustainability. It will save up to 840 tonnes of CO2 emissions per year and create 40 jobs during its construction and operations phase.

“We take immense pride in being good stewards of the environment and are pleased to further enhance our efforts with this solution. “Sustainability is at the heart of the farm’s philosophy”, says Alhaji Mahey Rasheed, Chairman of Premium Poultry Farms. “This project also allows us to benefit from the substantially lower energy costs offered by the solar PV technology and we are excited to become the largest solar-powered poultry farm in the country”.

Terje Osmundsen, Founder and CEO of Empower New Energy, added that “Empower is very pleased to collaborate with Rensource Energy in order to finance this project with Premium Poultry Farms, which reflects the success, dynamism and growth of Nigeria’s renewable energy sector. Our investment fund is poised to accelerate Africa’s transition to clean energy and this is evident in how quickly we have able to mobilise financing for this crucial project.”

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About Rensource Energy: Rensource is a leading West African provider of renewable energy related services. Rensource is focused on developing, financing, and managing critical infrastructure for African enterprises. The company is located in Lagos, Nigeria. For more information visit https://www.rensource.energy/.

About Premium Poultry Farms: Premium Poultry Farms is one Nigeria’s largest poultry farms. The farm has the most automated operating process of any farm in the country and currently produces over six-hundred-thousand eggs daily. The farm is located Abuja, Nigeria.

About Empower New Energy (Empower): Empower New Energy is an award-winning impact investment company investing in small and medium-scale renewable energy projects across Africa through its investment vehicle Empower Invest. The investors in the fund include Norfund (Norway’s Investment Fund for developing countries), ElectriFI (the electrification Financing Initiative, funded by the EU) and a group of private impact investors. Empower operates from its offices in Oslo, London, Nairobi and Accra, and through local partners in Nigeria amongst others. For more information visit: https://www.empowernewenergy.com/.

3 December 2020: Although advantageous, local currency financing for off-grid renewables projects and businesses in Africa is still limited, according to a new report released by the African Development Bank.

The report, Exploring the Role of Guarantee Products in Supporting Local Currency Financing of Sustainable Off-Grid Energy Projects in Africa, summarized findings of an in-depth study of documents on the off-grid energy and local currency financing sector, as well as interviews of energy stakeholders in the commercial and industrial and mini-grid sectors in Ghana, Kenya, Nigeria, and Tunisia.

Companies that invest in off-grid renewable energy solutions in Africa grapple with limited access to credit as a result of risk profiling that is of concern to providers of local debt financing. Where credits are offered, the interest rates can be extremely high.

There are potential advantages in using local currency debt financing for off-grid renewables projects and businesses to mitigate foreign exchange (FX) risks in the African continent. With the emergence of leasing and solar-as-a-service providers, there is the need for credit enhancement products to assess the availability of local currency finance for sustainable energy projects in Africa and the obstacles developers face in tapping into local financial and capital markets.

“Engaging with local currency markets to provide access to long-term local currency funding will allow borrowers to reduce currency and interest rate risks,” Dr. Daniel Schroth, Acting Director for Renewable Energy and Energy Efficiency, said in opening remarks made at the virtual launch of the report on 25 November.

Countries are facing the dual objective of increasing the availability of energy to households and businesses while decreasing the dependency on fossil fuels by adopting renewable or low carbon technologies. However, local currency finance providers have limited appetite for investing in the commercial and industrial sector, other than through traditional on-balance sheet corporate lending to established players, the report reveals.

The African Development Bank through the Sustainable Energy Fund for Africa (SEFA), actively searches for solutions that can help to catalyse investments in Africa to scale-up the deployment of decentralized energy access solutions.

Wale Shonibare, Director, Energy Financial Solutions, Policy and Regulations, at the African Development Bank said, “the participation of local banks and capital markets in Africa’s off-grid sector is still extremely limited. Therefore, mobilizing local capital into Africa’s energy sector is important for developers deploying off-grid solutions."

One approach to stimulating local currency lending is through credit enhancement products that provide risk mitigation for local currency lenders and institutional investors.

Alastair Smith, Co-founder & Head of Nigeria Operation of Power Gen Renewable Energy, argued that interest rates on local currency debt financing is extremely high in countries that PowerGen operates. "If we are able to use local currency, it will be preferable for us, but we are unable to get local currency support that is affordable in most countries.”

While there are challenges, the panellists also highlighted there has been progress with developing and launching more innovative structured solutions. Eric Mboma, Director of Subsidiaries and Affiliates at the Africa Guarantee Fund indicated that that through their Green Guarantee Portfolio, they provide a risk sharing offer for financial institutions, “taking up to 55% of risk in the sector to incentivise financial institutions to lend.”

Per Van Swaay, Director at the TCX Fund, said that they have supported local currency financing in a number of off-grid renewable energy projects across Africa. This intervention ensures successful implementation of off-grid energy projects.

For Chinua Azubike, CEO, InfraCredit, “The ability to mobilise local currency financing is possible. We have provided local currency guarantee for energy projects, estimated at about 134MW capacity. This has increased from $50 million to $146 million today.”

Anshul Rai, the Founder & CEO of the Nigeria Infrastructure Debt Fund also made a strong case for local currency financing and limited guarantee products in the African continent. “Guarantee products can play a role, but we don’t see it as a replacement for undertaking proper financing scheme.”

Clemens Calice, the Co-CEO of Lion’s Head, highlighted that through the Facility for Energy Inclusion, they provide US dollar and local currency debt financing. He emphasised the importance of having a structured insurance and guarantee program alongside to support local debt financing.

Exploring the Role of Guarantee Products in Supporting Local Currency Financing of Sustainable Off-Grid Energy Projects in Africa aims to provide information, analysis, and insights on local currency opportunities for off-grid energy businesses and projects, with the objective of stimulating private sector initiatives in the off-grid space.

Download the report here.