From MARIA MACHARIA in Nairobi, Kenya
NAIROBI, (CAJ News) – SMALL and medium projects focused on alleviating energy problems in the continent have received a major boost after the African Renewable Energy Fund (AREF) committed US $200 million in capital support.
AREF, headquartered in Nairobi, Kenya, is a dedicated renewable energy fund focused on sub-Saharan Africa.
It has announced the availability of the funds during the African Development Bank’s (AfDB’s) Energy Week.
AfDB and its Sustainable Energy Fund for Africa (SEFA) are the fund’s lead sponsors, with equity investment of $25 million and $25,5 million, respectively, alongside $4,5 million from the Global Environment Facility (GEF).
SEFA has additionally committed a $10-million Project Support Facility (PSF) to be deployed at an early stage to structure bankable deals.
The total AfDB-mobilized package of US $65 million has provided a solid foundation for attracting capital from commercial and institutional investors to the renewable energy segment in Africa.
Alex Rugamba, Director of AfDB’s Energy, Environment and Climate Change Department, said AfDB was pleased to see that AREF was now fully capitalised to deliver on its pan-African mandate.
“We are also equally excited that SEFA and Global Environment Facility participation have been catalytic in mobilizing significant amounts of commercial capital into AREF over a short time-frame. This is ey for
accelerating deployment of modern, clean and affordable energy in the continent.”
AREF held its first close of $100 million in March last year and has since been investing capital in grid-connected development stage renewable energy projects, including small hydro, wind, geothermal, solar and biomass projects.
– CAJ News