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AfrElec DECENTRALISED ENERGY AfrElec
AfDB approves new program
to promote investment in
decentralized renewable
AFRICA THE African Development Bank (AfDB) Group 2021.
has approved a new program to promote invest- The framework forms part of the bank’s
ment in decentralized renewable energy in six broader off-grid strategy under the New Deal
countries on the continent. on Energy for Africa and complements existing
The AfDB Board of Directors approved the initiatives such as the Sustainable Energy Fund
Leveraging Energy Access Finance Framework for Africa.
(LEAF), under which the bank will commit up AfDB Vice President in charge of Power,
to $164mn. Energy, Climate Change and Green Growth
The $800mn program will help spur com- Kevin Kariuki said the bank is partnering with
mercial and local currency investments to scale the Green Climate Fund on LEAF to accelerate
up the activities of decentralized renewable access to electricity and reduce the respective
energy companies in Ghana, Guinea, Ethiopia, countries’ carbon footprints.
Kenya, Nigeria and Tunisia,” the AfDB said in a LEAF over six years will deploy concessional
February 18 press release. finance, credit enhancement instruments and
Scaling up decentralized renewable energy technical assistance to crowd-in private sector
(solar home systems, green mini-grids, and solar investors, including local banks, to finance and
solutions for commercial and industrial use) is accelerate efforts to power the continent.
crucial to achieving the Sustainable Develop- “The approval of this program is very timely
ment Goal (SDG) 7 objectives and requires as it increases the bank’s toolbox to support the
significant private sector and local currency fast-moving decentralized energy access market
financing. which complements conventional grid-con-
AfDB developed LEAF in collaboration nected solutions,” said Daniel Schroth, AfDB
with the Green Climate Fund, which approved Acting Director in charge of Renewable Energy
$170.9mn in concessional financing for it in July and Energy Efficiency Department.
Week 08 24•February•2022 www. NEWSBASE .com P11
