16 July 2020: Loan financing stemming from the EEP Africa Catalyst window will accelerate REDAVIA’s C&I Solar Leasing Model with SMEs in Ghana and Kenya.
NDF launched the EEP Catalyst window in 2019 as a pilot to provide follow-on debt financing to successful companies from the EEP Innovation grant portfolio. EEP Catalyst is an evolution of the EEP Africa platform that builds on a decade of grantmaking and a portfolio of close to 250 early stage clean energy companies to enable scale up of commercially viable clean energy solutions.
“This first EEP Catalyst loan to REDAVIA is a clear demonstration that we can deliver on the new NDF Strategy and its commitment to deliver flexible financing and catalytic impact. It has all the ingredients that define NDF’s added value in the Nordic climate financing landscape. It demonstrates our unique mix of financing instruments and capacity to blend and match solutions to support our partners, public or private. We are proud to be standing with our partners and supporting the emergence of a greener economy, precisely at this time of Covid-19.” – Karin Isaksson, Managing Director, NDF
EEP Catalyst is designed to finance the scaling of the next generation of clean energy market leaders in Africa. Flexible early stage debt is still scarce in the sector and expansion stage loans are needed to support innovation and unlock commercial capital.
“EEP Africa is one of REDAVIA’s longest funding relationships and this transaction proves again that long-term, trust-based relationships are the key to meeting today’s challenges. This crucial funding enables REDAVIA to continue to support companies in Ghana and Kenya with affordable, clean power so these businesses build local wealth and increase employment sustainably.” – Erwin Spolders, CEO, REDAVIA
The loan represents a financing commitment of EUR 1.5 million and supports scale up of REDAVIA’s solar power leasing model toward commercial and industrial (C&I) and SME clients in Ghana and Kenya.
“The relationship with REDAVIA started with a grant in 2015; now we are leveraging that good experience and pivoting to a lender role. This new injection of financing enables REDAVIA to accelerate the clean energy transition in the commercial and industrial sector and scale up solar farm installations in Ghana and Kenya. It culminates a multi-year vision to establish a follow-on debt financing window under EEP Africa. We are now positioned to provide capital more dynamically to match the growth and evolving needs of companies in the portfolio.” – Charles Wetherill, Fund Manager, EEP Africa, NDF
REDAVIA’s clients in Ghana and Kenya benefit from a cost-effective, reliable and clean energy solution with minimal upfront investment and no technical skills required, supporting the reduction of carbon emissions and increasing the impact on a sustainable society.
EEP Catalyst financing will enable REDAVIA to scale up its operations and contribute to green jobs and green growth by installing 1.26 MWp and generating 1700 MWh/year of clean energy. The shift among SME and institutional clients to lower cost, clean energy consumption will lead to savings of USD 20,000/year in energy expenditures and reduce or avoid 730 tCO2e/year in GHG emissions.
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About NDF: NDF is the joint Nordic international finance institution (IFI) focusing on the nexus between climate change and development in lower-income countries and countries in fragile situations. Since the introduction of the climate mandate in 2009, NDF has built a track record of adding value by financing climate mitigation and adaptation projects in close interaction with its extensive network of strategic partners. NDF provides financing on concessionary terms in the form of grants, loans, and equity with an active portfolio valued at over 300 million EUR. NDF engages in both the public and the private sector, and uses financial instruments flexibly, alone or in various combinations, to match the needs of the project.
Financing for this loan stems from EEP Africa, a multi-donor fund hosted and managed by NDF with funding also from Austria and Finland, that provides early stage grant and catalytic financing to innovative clean energy projects, technologies and business models in 15 countries across Southern and East Africa.
About REDAVIA: REDAVIA offers solar power for businesses in West and East Africa. The REDAVIA system is based on a pre-configured model, including high-performance solar modules and electrical components. It is easy to ship, set up, scale, and redeploy. Businesses benefit from a cost-effective, reliable, clean energy solution with minimal upfront investment or technical skills.
