Page 8 - AfrElec Week 33 2021

AfrElec OFF-GRID AfrElec
AfDB reaches $20mn closures for Off-Grid Recovery Platform
AFRICA
THE African Development Bank (AfDB) has reached financial close for a $20 million conces- sional investment from the Sustainable Energy Fund for Africa (SEFA) in the Covid-19 Off-Grid Recovery Platform (CRP).
The CRP is a 5-year, $50mn blended finance initiative and is designed to provide relief and recovery capital to energy access businesses, supporting them through and beyond the pandemic.
The concessional loan agreements were signed with fund managers Lion’s Head Global Partners, Triple Jump, and Social Investment Managers and Advisors, following approval by the AfDB in December 2020 for a $20mn con- cessional investment from SEFA, to establish the platform.
“Lion’s Head is immensely grateful for the support from the AfDB, in particular the SEFA team and funders, for developing this innova- tive and catalytic co-investment instrument. African markets have been disproportionately affected by COVID-19 due to lack of infrastruc- ture, macro vulnerabilities especially in terms of currency and credit shocks and increasing global protectionism,” said Harry Guinness, Managing Director of the Off-Grid Energy Access Fund, part of the wider Facility for Energy Inclusion.
“The COVID-19 Off-Grid Recovery Plat- form comes at a critical moment for early-stage energy access companies affected by COVID-19
and allows the Energy Entrepreneurs Growth Fund to continue releasing flexible capital into the sector at a time when risk capital is increas- ingly scarce,” said Jan-Henrik Kuhlmann, Head of Sustainable Energy at Triple Jump.
The Platform supports businesses commer- cialising solar home systems, green mini-grids, clean cooking, and other renewable energy access solutions in mitigating the impacts of the pandemic and ensuring a robust commercial recovery of the industry.
Asad Mahmood, CEO and Managing Part- ner of Social Investment Managers and Advi- sors, said: “Many small businesses have suffered seriously during the COVID-19 crisis. The Afri- can Development Bank’s relief efforts are mar- ket-driven and flexible and will help to leverage existing funds to ultimately assist energy distri- bution business[es] in Africa.”
“The impact of the COVID-19 pandemic is jeopardizing the immense progress that has been achieved over the last decade in electrification through off-grid technologies across Africa,” said Joao Duarte Cunha, Division Manager for Renewable Energy at the African Development Bank.
The bank said that it was developing the plat- form and other renewable energy initiatives in order to build a sustainable and more climate-re- silient future by catalysing private investment in low carbon infrastructure.™
P8
w w w . N E W S B A S E . c o m Week 33 19•August•2021