• REPP 2 builds on the legacy of the Camco-managed Renewable Energy Performance Platform (REPP);
• Green Climate Fund’s endorsement of investment follows signing of indicative term sheet for a further investment of up to USD 50m from REPP into REPP 2.

25 October 2023: The Board of the Green Climate Fund (GCF) has approved the allocation of USD 50m in equity to REPP 2, a new debt fund providing an opportunity to invest in Sub-Saharan Africa’s fast-growing renewable energy market.

Climate and impact fund manager Camco is developing REPP 2 as a USD 250m fund designed to deliver significant climate, economic and gender impacts while ensuring sustainable returns for investors.

Latest research shows that approximately 590m people in Sub-Saharan Africa do not have access to electricity, with the International Energy Agency claiming USD 22bn is needed annually to deliver reliable energy access across the continent by 2030 to meet SDG7. At the same time, Africa is facing increasing climate hazards and countries require as estimated USD 2.8tn by 2030 to implement their Nationally Determined Contributions under the Paris Agreement.

REPP 2 has been structured as a paradigm-shifting blended finance facility leveraging public, private and commercial funding to invest in small-scale and decentralised renewable energy projects in Sub-Saharan African countries.

Through its private sector approach, and a strong focus on supporting communities vulnerable to climate change, it is projected that over REPP 2’s lifetime the fund will:

• make 35-40 investments that support the development of decentralised renewable energy and strengthen the resilience of national grid infrastructure to promote economic development in Sub-Saharan Africa, particularly in Least Developed Countries
• provide 7.7m people with new or improved access to clean, reliable and affordable power across Africa, increasing economic opportunities and access to productive use of energy activities
• mitigate 12.7m tonnes of carbon dioxide equivalent in greenhouse gas emissions over projects’ lifetime
• invest USD 70m in projects aligned with 2X’s gender lens investing criteria, and
• mobilise USD 786m in third-party funding for green growth in target countries.

With its blended finance structure, REPP 2 represents an evolutionary step from the USD 120m REPP facility, which was fully funded by the UK’s Foreign, Commonwealth and Development Office (FCDO).

Today’s announcement comes after the REPP Board signed an indicative term sheet for a junior equity investment of up to USD 50m from REPP into REPP 2. The combined junior equity investments of up to USD 100m from the GCF and REPP are designed to protect capital, and to generate an appropriate level of returns to REPP 2’s commercial investors.

Ben Hugues, Investment Director at Camco, said: “REPP 2 builds on the successes and lessons from REPP to provide a new fund that will offer significant commercial investment into Africa’s renewable energy sector, underpinning the continent’s green growth potential. Drawing on Camco’s 30-year track record in renewable energy investing, REPP 2 is projected to deliver sustainable financial returns and multiple developmental, social and environmental benefits.

“We are naturally delighted at the prospect of working with the Green Climate Fund on this new venture.”

Peter Coveliers, REPP Board member and one of the founders of the REPP initiative, said: “Blended finance is instrumental in attracting private sector funds to support a clean energy transition and green growth in Africa.

“By building on the many strengths of REPP and by adopting a well-designed blended finance structure, REPP 2 has the potential to unlock significant additional investment capital to fund climate-related projects on the continent. It’s truly exciting to be part of supporting REPP 2 as it builds upon REPP’s impressive legacy of achievements.”

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About REPP 2: REPP 2 is a private debt fund designed and managed by Camco that focuses on the energy transition in Sub-Saharan Africa. It is structured as a blended finance facility to ensure an appropriate risk-adjusted return to investors and aims to deliver significant climate, environmental, economic and gender impacts through the financing of small and medium-scale renewable energy assets. Funding from the GCF in REPP 2 will initially focus on Cameroon, Democratic Republic of Congo (DRC), Lesotho, Madagascar, Malawi, Niger, Nigeria, Sierra Leone and Zambia.

REPP 2 builds on the legacy of the Camco-managed Renewable Energy Performance Platform (REPP). REPP was set up in 2015 to accelerate Africa’s transition to a sustainable development pathway by providing flexible capital to small-scale, decentralised renewable energy projects and developers, and demonstrate their operational feasibility to other investors and lenders. To date, REPP has invested in 43 renewable energy companies and projects across 20 countries, leading to over 1.3m people being connected to electricity for the first time and 387MW of renewable energy capacity installed and under development. For more information, visit: https://camco.fm/repp-2.

About Camco: Camco is a specialist climate and impact fund manager, leading the transition in emerging markets. We offer clean, secure investments, pairing the conscience of a development bank with the agility of a private company. Camco is an Accredited Entity of the Green Climate Fund and is authorised and regulated by the UK Financial Conduct Authority. The company has offices in Accra, Auckland, Helsinki, Johannesburg, London, Nairobi, Sydney and Toronto. For more information, visit: https://camco.fm.

About 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 USD 12.8bn (USD 48.3bn including co-financing) delivering transformative climate action in more than 120 countries.

It also has a readiness support programme that builds capacity and helps 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°C. For more information, visit: https://www.greenclimate.fund/.