10 December 2020: The Beyond the Grid Fund for Africa (BGFA) was set up on the initiative of the Swedish Government with the goal of incentivising the private sector to provide sustainable, affordable, clean, high-quality energy services to underserved people in off-grid rural areas. In February 2021, BGFA will continue its expansion to Mozambique and invite interested energy service providers (ESPs) to compete for a funding window geared specifically towards developers of micro-grids. Successful applicants will be able to deploy innovative technology and strong business models to supply energy services tailored to customer needs and ability to pay, and to scalable generation capacity in accordance with the growth in actual demand.

The BGFA programme builds on the award-winning initial pilot phase in Zambia, the Beyond the Grid Fund for Zambia (BGFZ), and has recently closed the pre-qualification phase of the Call for Proposals in Burkina Faso, Liberia and Zambia (BGFA1) with 79 received applications.

‘’Sweden has supported the development of energy infrastructure for many years with the aim to increase access to electricity services from renewable energy sources. The entry of the Beyond the Grid Fund for Africa is an excellent step for Mozambique’s energy infrastructure and to connecting its rural communities to affordable and sustainable sources of energy,’’ says Mette Sunnergren, Swedish Ambassador to Mozambique. ‘’The model, which has been proven to work in Zambia, has been adapted to suit Mozambique’s specific requirements and electrification needs, and it will contribute to Mozambique’s goal and the Sustainable Development Goal of achieving universal access to sustainable energy by the year 2030.”

This funding window has been designed in cooperation with the Mozambican Energy Fund (FUNAE), which has contributed substantially to off-grid energy access over the last 20 years. The roll-out is expected to be implemented under a pilot licensing framework focusing on the provision of off-grid energy services within specified energy service areas. The energy services will be rolled out during a four-year period with total funding of EUR 6.7 million.

‘’The emphasis and central objective of the BGFA programme in Mozambique is to attract private sector participation and investment and to create the conditions for sustainable business models in the provision of high quality, affordable energy services to rural areas,’’ says António Osvaldo Saíde, CEO of FUNAE. ‘’With more than two-thirds of the population without access to electricity, there is significant unmet demand for modern energy services and considerable potential for expanding the off-grid energy services market in Mozambique. Business models will need to be tailored to the needs of these consumers and take into account limited disposable incomes.’’

The launch of the pre-qualification stage is expected in the beginning of February 2021 with the publication of the pre-qualification guidelines. The conditions for this second round of BGFA funding (BGFA2) will be similar to those outlined in the pre-qualification guidelines for BGFA1 and adapted for Mozambique. Interested parties can refer to this document for an overview of how the programme works, in particular with regard to:

• Eligible costs under BGFA
• Disbursement of funds
• Energy service tier matrix for micro-grids and productive use
• PQ eligibility criteria for micro-grids (applicants, financial position, professional capacity, market experience, eligible projects)
• Key evaluation criteria
• Annexes A-E

Once the pre-qualification documents have been published, applicants will be invited to register for the online application tool, available through the Beyond the Grid Fund for Africa’s website at www.beyondthegrid.africa/register/ and submit possible questions through this system.

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About BGFA: The Beyond the Grid Fund for Africa is a facility established and managed by the Nordic Environment Finance Corporation (NEFCO). NEFCO is an international financial institution focused on environmental and climate investments. BGFA is designed and implemented in partnership with the Renewable Energy and Energy Efficiency Partnership (REEEP), an international multilateral partnership based in Vienna, Austria, working to accelerate market-based deployment of renewable energy and energy efficiency in developing countries.

The facility is funded by Sweden through the Swedish International Development Cooperation Agency (Sida) and Swedish embassies in the target countries. Power Africa, an initiative administered by USAID, is providing an in-kind technical assistance contribution worth approx. EUR 4 million (USD 4.5 million) over three years in order to help operationalise the initiative and develop a pipeline of commercially viable projects within the framework of BGFA. Denmark, through the Ministry of Foreign Affairs, joined the BGFA programme in December 2020 with DKK 37.5 million (EUR 5 million) to support a planned expansion to Uganda. Germany, through its development bank KfW, will join the BGFA1 country programme for Zambia (pending final approval), with a focus on mini-grids. The facility remains open to donors as a cost-effective tool to finance future Calls for Proposals through existing or new country windows and bring access to clean energy to millions of rural Africans.

BGFA supports, in particular, the objective of Sustainable Development Goal number 7, which aims to ensure access to affordable, reliable, sustainable, modern energy for all by 2030, as well as the Paris Agreement on climate change and host country priorities.

10 December 2020: The African Development Bank joined a group of 11 multilateral development banks (MDBs) and the International Monetary Fund (IMF) on Thursday in launching a first-ever joint report on financing the Sustainable Development Goals (SDGs).

The launch took place during a virtual ceremony attended by the heads of the institutions. The report is released at the end of a critical year, with the COVID-19 pandemic threatening to reverse progress on the SDGs. In response, MDBs have collectively mobilized a global response package of $230 billion between 2020 and 2021, to reduce the pandemic’s impact, of which $75 billion will be directed to the world’s poorest countries before the end of 2020.

The crisis triggered by the COVID 19 pandemic has threatened to reverse progress against the SDGs. National and global leaders have recognized the opportunity—and responsibility—to ensure that recovery efforts support the SDGs, the report said.

The report highlights selected examples of initiatives related to the 17 SDGs and efforts to “mobilize finance, create knowledge, and build capacity” for countries for their achievement. It showcases examples of how their financing directly contributes to advancing SDGs that empower people, protect the planet, foster prosperity for all, and develop sustainable quality infrastructure.

Head of the Islamic Development Bank Group (ISDB) Bandar Hajjar, whose institution led the compilation of the report, said the pandemic had highlighted the fragility of the progress countries have made toward the SDGs and underlined the imperative of fostering better and more resilient development.

“We recognize the urgency to achieve the 2030 Agenda through the work that needs to go into building a more resilient post-COVID-19 world,” Hajjar said. “The report also emphasizes the critical importance of MDBs partnerships to deliver financing, knowledge, and capacity building support for the SDGs.”

Such partnerships and coordination would include increased support for an ambitious climate action for the planet; fostering digitalization for sustainability; continuing to promote sustainable infrastructure, strengthening resilience and mobilizing finance by attracting, de-risking, leveraging and catalyzing investments of all kinds.

“This joint report reflects our collective engagement and strong commitment to accelerate progress towards the SDGs. To accelerate Africa’s development, we will continue joining investment hands across the globe,” African Development Bank President Akinwumi Adesina said.

Examples of African Development Bank initiatives, such as its Technologies for African Agricultural Transformation Program, which aims to reach 40 million farmers by 2023 and add 120 million metric tons to the African food basket, are included in the report.

The Bank’s Africa NDC Hub, established in 2018 to provide resources to countries in the region to implement the Nationally Determined Contributions (NDCs), is also highlighted. The hub is supported by18 international partners, including partner MDBs such as the Islamic Development Bank.

Key activities include developing a digital tool for policy makers to mainstream the SDGs, NDCs, and the Africa Agenda 2063 in national development plans. The Bank has also supported Cote d’Ivoire in developing an NDC investment plan, and its Africa NDC Hub hosts the ClimDev Special Fund to modernize Africa’s climate and weather observation networks.

“These are very extraordinary times…we will need to have audacious leadership, we will need to have audacious partnerships, and we will need to have audacious financing systems,” Adesina said.

The 12 organizations partnering on the report are the African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the IDB Group, the International Monetary Fund, the Islamic Development Bank Group, the New Development Bank, and the World Bank Group (World Bank, IFC, MIGA).

To read the full report click here.

10 December 2020: Today, Husk Power Systems, (huskpowersystems.com), the leading rural energy company operating renewable minigrids in Asia and Africa, announced that it has achieved two industry firsts: surpassing 100 community minigrids, and serving more than 5,000 micro-enterprise customers.

Despite the economic downturn caused by the coronavirus pandemic, Husk Power has demonstrated its resilience by achieving zero service disruption and providing emergency financial support to existing and new customers. As a result, it continued to grow from March to September, seeing a 52% increase in customers in India, while revenue grew by 101% during the same period. Similar growth occurred in its Africa markets.

The 100 minigrids, located in India and Tanzania with near-term expansion to additional African markets including Nigeria, represent a more than 10-fold increase from mid-2018. Average capacity of the minigrids is 50 kW, a system size that is significantly larger than most other rural energy service providers and able to power multiple productive loads for a range of small businesses, including retail shops, factories, agricultural processing and cold storage, water filtration and schools, as well as households.

Micro-enterprise customers of Husk Power on average have seen a 33% increase in profits once connected to the minigrids, according to the company’s market research.

“We’re now able to roll out at least 2 new minigrids per week, one of the fastest growth rates in the industry, and there is still considerable room for acceleration,” said CEO and founder Manoj Sinha. “Hitting 100 minigrids is a stepping stone to becoming the first commercially viable minigrid company in the world and to doubling our minigrid fleet to 200 in the next 12 months. This is in line with our vision of reaching 5,000 minigrid sites serving 500,000 micro-enterprise customers.”

Husk Power’s rapid growth has been supported by its success in raising US$25 million in equity financing from leading investors, including FMO, Shell, Swedfund and ENGIE Rassembleurs d’Energies.

Brad Mattson, chairman of the Husk Power Board of Directors, said: “Husk Power is demonstrating what scale looks like for the minigrid sector, setting the company up for another breakthrough year in 2021, in which we plan to achieve operating profitability.“

Added The Rockefeller Foundation’s Senior Vice President for Power & Climate, Ashvin Dayal: “Even in this time of global crisis and a nationwide lockdown to control the spread of COVID-19, Husk Power Systems has been able to provide safe, reliable electricity for homes, businesses and essential services across rural India. We are proud to support their efforts through our Smart Power India initiative, and I commend the entire team for reaching this important milestone in their work to power lives and livelihoods.”

Jaideep Mukherji, CEO of Smart Power India, commented: “Husk Power’s 100th minigrid is a significant milestone along the path to achieving reliable electricity for all. Husk Power has notably pioneered the off-grid power generation and distribution model in India. Their end-to-end innovative, technology-led energy solutions have the capacity to be replicated and sustained across the globe. Minigrid services will continue to play an important part in rural India’s social and economic development, particularly in the wake of the COVID-19 pandemic. I congratulate Manoj and team for the strong leadership and perseverance that they have shown in supporting the sector’s efforts in providing good quality power to the last mile.”

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About Husk Power Systems: Founded in 2008, Husk Power Systems is an energy technology company that accelerates access to clean, modern and affordable electricity in Africa and Asia by developing and operating renewable energy minigrids. Its customer-centric service matches the growing needs of households, businesses, and community services. The company’s grid-compatible solution also supports national electrification plans. For more information, visit huskpowersystems.com.

9 December 2020: “The Bank’s partnership with IRENA will support Africa’s energy transition and our goal to achieve universal access to affordable, reliable, sustainable and modern energy in Africa by 2030.”  – Bank VP Kevin Kariuki.

“This agreement represents the type of coordinated international cooperation that is the cornerstone of the realisation of sustainable development in Africa and the achievement of Paris Agreement goals.”  – IRENA Director-General Francesco La Camera.

The International Renewable Energy Agency (IRENA), and the African Development Bank (AfDB), have agreed to work closely together to advance the continent’s energy transition through joint initiatives that support investments in low-carbon energy projects.

Under the Declaration of Intent, the two entities confirmed their wish to collaborate on supporting the continent’s energy transition under a framework of core activities. These include co-organising renewable energy investment forums as part of IRENA’s contribution to the Climate Investment Platform, and collaboration on the Bank’s annual Africa Investment Forum. Furthermore, strong emphasis will be placed on concrete support for enhancing the role of renewable energy in Nationally Determined Contributions and sustainable development objectives.

The joint declaration was signed by Francesco La Camera, Director-General of IRENA, and Kevin Kanina Kariuki, Vice-President, Power, Energy, Climate and Green Growth at the African Development Bank.

Mr. Kariuki said: “Driven by the aspiration to harness Africa’s huge renewable energy potential, the African Development Bank is today at the forefront of investing in renewable energy in Africa. The Bank’s partnership with IRENA will advance this aspiration and support Africa’s energy transition and our goal to achieve universal access to affordable, reliable, sustainable and modern energy in Africa by 2030.”

IRENA’s Global Renewables Outlook report, released earlier this year, revealed that sub-Saharan Africa could generate 67 per cent of its power from indigenous and clean renewable energy sources by 2030. Further analysis shows that the energy transition would boost GDP, improve welfare and stimulate up to 2 million additional green jobs in sub-Saharan Africa by 2050.

Mr. La Camera said: “The African continent has some of the most abundant renewable energy resources in the world and the potential to transform outcomes for millions of people through the accelerated deployment of a renewables-based energy system. Renewables will increase energy security, create green jobs, advance energy access, including clean cooking, and help build resilient African economies.

“This agreement represents the type of coordinated international cooperation that is the cornerstone of the realisation of sustainable development in Africa and the achievement of Paris Agreement goals,” he continued. “We will pursue an action-oriented agenda that puts African countries on a path to realising their full renewable energy potential.”

The declaration also provides for collaboration on the African Development Bank’s Desert to Power Initiative, which aims to mobilise public and private funding to install 10 GW of solar power by 2025 in 11 countries in the Sahel region of the African continent.

The two institutions will also engage in capacity building and knowledge exchange activities to reinforce joint efforts and cooperate on developing regional and national renewable energy case studies.

7 December 2020: Today, the Efficiency for Access Research and Development Fund announced the successful completion of the Sure Chill company’s ‘Smart Box’ project, designed to make domestic refrigeration more efficient and affordable in developing countries.

The Cardiff-based cooling technology company has developed an innovative refrigerator control platform that can be integrated with solar home systems. The project received funding from UK aid through the Efficiency for Access Research and Development Fund in 2019.

Many people living in developing countries cannot afford appliances available on the market, including refrigerators. In Kenya, for example, an off-grid refrigerator and system can cost at least US$1,000. As a result, only 4% of households without access to the electrical grid in sub-Saharan Africa own a refrigerator.

Having identified this need, the Efficiency for Access Research and Development Fund supported Sure Chill in developing a prototype device that could be scaled for mass production to reduce the costs of off-grid domestic refrigeration, while improving overall system performance. Sure Chill estimates that the integration of the ‘Gen2 Smart Box’ into its off-grid domestic refrigerator results in an $84 cost reduction for customers.   

Sam Mann, CEO Sure Chill Global, commented:

‘The Efficiency for Access Research and Development Funding was pivotal in enabling Sure Chill to develop its Smart Box refrigeration control platform. This has led to significant reductions in the cost of off-grid domestic refrigeration, an important step towards unlocking universal and clean access to refrigeration.’

The first version of the smart controller developed by Sure Chill, has already been integrated into 90 domestic refrigerators delivered to Kenya for a sales trial with a solar home system provider, which is working across sub-Saharan Africa. Larger production runs are planned for 2021 and will incorporate the GEN2 Smart Box controller, which is being finalised for full production.

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Efficiency for Access: Efficiency for Access is a global coalition working to promote high performing appliances that enable access to clean energy for the world’s poorest people. It is a catalyst for change, accelerating the growth of off-grid appliance markets to boost incomes, reduce carbon emissions, improve quality of life and support sustainable development. Efficiency for Access consists of 15 Donor Roundtable Members, 10 Programme Partners, and more than 30 Investor Network members. Current Efficiency for Access Coalition members have programmes and initiatives spanning 44 countries and 22 key technologies.  

The Efficiency for Access Coalition is coordinated jointly by CLASP, an international appliance energy efficiency and market development specialist not-for-profit organisation, and UK’s Energy Saving Trust, which specialises in energy efficiency product verification, data and insight, advice and research. For more information visit: efficiencyforaccess.org.

7 December 2020: ARE Member SunCulture, a Kenya-based technology company and leader in solar power systems, water pumps, and irrigation systems for smallholder farmers, closed a Series A investment round of USD 14 million. ARE Member Energy Access Ventures (EAV) led the round and was joined by Électricité de France (EDF), Acumen Capital Partners (ACP), and Dream Project Incubators (DPI). EAV is furthering its investment after having participated in SunCulture’s 2017 seed round, while EDF has supported SunCulture since 2018 both as an investor and as a business development partner, primarily in West Africa where EDF is a leading player in off-grid solar systems.

SunCulture offers comprehensive solutions tailored to smallholder farmers, combining market-leading technology with Pay-As-You-Grow (PAYG) financing and value-add services. As the first company to commercialize solar-powered irrigation in Africa, SunCulture currently reaches customers across Kenya, Ethiopia, Uganda, Zambia, Senegal, Togo, and Cote D’Ivoire. With these funds, SunCulture is in a position to accelerate direct sales in Kenya, continue to expand internationally, and fund existing product improvements and new product innovation.

In Africa, 80% of families depend on agriculture for their livelihoods, but just 4% use irrigation, while the remainder of households rely on increasingly unpredictable rainfall. This challenge is compounded by the reality that over half the population in sub-Saharan Africa lacks access to a reliable and affordable source of energy. SunCulture’s systems enable customers to increase their agricultural productivity while accessing a steady supply of water and clean energy for household use. Farmers can grow their incomes 5-10x through increasing yields, growing higher-value cash crops, cultivating more of their land, and raising more livestock.

Samir Ibrahim, SunCulture’s CEO and Co-Founder, underscores the urgency and impact of addressing affordability in a bid to eradicate food insecurity across the continent, “Now more than ever, scaling access to clean energy and water is critical for food security, smallholder farmer livelihoods, and climate resilience. This is essential to the wellbeing of rural households, as well as farmers’ ability to support themselves in uncertain times. This equity raise puts us in a position to dramatically accelerate our growth and international expansion. We’re thrilled to work with this phenomenal coalition of investors, who have a deep understanding of our business and share our commitment to reaching underserved communities.”

Ekta Partners acted as the exclusive financial advisor for this transaction. CrossBoundary provided additional advisory support, including an analysis on the market opportunity and competitive landscape, under the United States Agency for International Development (USAID)’s Kenya Investment Mechanism Program.

4 December 2020: The Board of Directors of the African Development Bank has approved a $20 million concessional investment from the Sustainable Energy Fund for Africa (SEFA) to establish the COVID-19 Off-Grid Recovery Platform (CRP). The $50 million blended finance initiative, will provide relief and recovery capital to energy access businesses, supporting them through and beyond the pandemic.

The platform is anchored on a partnership with three specialized energy access fund managers selected through a competitive process: Triple Jump, Lion’s Head Global Partners, and Social Investment Managers and Advisors.  The $20 million concessional envelope will be blended with their own capital and instruments, leveraging $30-$40 million in complementary commercial funding and enabling more affordable debt products. Through these partners, the recovery platform will support energy access companies commercializing and deploying solar home systems, green mini-grids, clean cooking and other decentralized renewable energy solutions. 

“This initiative underlines the African Development Bank’s commitment to the accelerated growth of Africa’s decentralized energy industry, based on renewables, as a key driver for universal energy access goals,” said Dr. Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth.

Joao Duarte Cunha, Division Manager for Renewable Energy at the African Development Bank, said the platform would fill a gap in the market.

“Understanding that time is of essence, this platform will enable the provision of tailored financial solutions by leveraging existing resources, expertise and infrastructure within the sector,” he said. In addition to providing immediate relief and recovery support, the platform will lay the foundation for a green and inclusive economic recovery post-pandemic.

“We are pleased to be selected to co-manage the COVID-19 Off-Grid Recovery Platform, which will be blended with funding from the Energy Entrepreneurs Growth Fund. The combination of funding and operational support will stabilize businesses and allow for continued investments during the COVID-19 crisis, mitigating the impact of the pandemic on energy access companies and set a sustainable trajectory for growth,” said Jan-Henrik Kuhlmann, Head of Sustainable Energy at Triple Jump.

Reflecting on the potential impact of the capital provided, Asad Mahmood, CEO and Managing Partner of Social Investment Managers and Advisors, said: “CRP is a much-needed and appreciated innovative effort of the Bank to use multiple fund managers to assist with liquidity needs of good energy businesses in Africa, currently affected by the COVID-19 pandemic.”

The relief and recovery capital will support businesses in mitigating the impacts of the pandemic and ensuring a robust commercial recovery of the industry, and has been endorsed by leading industry associations, including the Alliance for Rural Electrification (ARE), Africa Mini-Grid Developers Association (AMDA) and the Global Off-Grid Lighting Association (GOGLA).

“The Bank’s new instrument is a game changer that will sustain and strengthen the African energy access sector. The platform’s innovative co-investment structure allows fund managers like Lion’s Head to focus on what we do best – mobilizing and deploying human and financial capital to unlock sustainable power for vulnerable communities while targeting critical post-pandemic issues such as local currency funding in a period of high uncertainty and volatility,” said Harry Guinness, Managing Director of the Off-Grid Energy Access Fund, part of the wider Facility for Energy Inclusion.

The Board approval was granted on 1 December.

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About SEFA: SEFA is an AfDB-managed special fund providing catalytic finance for renewable energy. SEFA’s overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the Bank’s New Deal on Energy for Africa and Sustainable Development Goal 7. SEFA was established in 2011 in partnership with the Government of Denmark and has since received contributions from the Governments of United States, United Kingdom, Italy, Norway, Spain, and Sweden, Nordic Development Fund and Germany. SEFA is housed in the Renewable Energy and Energy Efficiency Department (PERN) under the Power, Energy, Climate, and Green Growth (PEVP) complex.

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.

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/.

• 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/.

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.

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.

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.

• 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).

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.

• 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.

• 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.

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.

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.

• 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/.