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AfrElec INVESTMENT AfrElec
UK pledges to guarantee
$2bn of AfDB debt
AFRICA THE United Kingdom will guarantee $2bn of earlier in June suggesting that London is consid-
the debt extended by the African Development ering guaranteeing at least $1bn of South African
Bank (AfDB) to the continent’s governments, debt as part of an $8.5bn climate finance deal.
bank president Akinwumi Adesina has revealed. The latest guarantee announced by the
The guarantee will allow the Côte d’Ivo- AfDB will help the continent bridge a financ-
ire-based lender to free up finance for climate-re- ing gap that Africa needs to meet the challenge
lated projects, such as renewable energy. of improving its infrastructure while helping it
“That allows us to transfer some of our own transition to greener energy.
assets, which we have on our sovereign loan According to the Rotterdam-based Global
books to the private sector,” Adesina said. “It will Center on Adaptation, Africa needs an annual
allow us to free up $2bn of additional financing $33bn to adapt to climate change, including for-
headroom for the bank.” tifications against rising sea levels.
The guarantee follows reports in Bloomberg
BII to invest $200mn in
African hydro Norfund, Scatec
AFRICA BRITISH International Investment (BII) has their net-zero pathways. It estimates that in
said it will invest up to $200mn into a joint ven- 10 years clean power provided by new assets
ture between its Norwegian counterpart Nor- can create 180,000 jobs, avoid at least 270,000
fund and the renewable power producer Scatec tonnes of carbon dioxide equivalent greenhouse
ASA to provide capital for that company’s hydro- gas emissions (GHG) annually and meet the
power projects in Africa. demands of over 3mn people.
“It’s great to announce that BII is putting “Investing to bolster Africa’s hydropower sec-
£160mn into hydropower in Africa, creating tor is a strong step toward helping to meet the
180,000 jobs,” said British Prime Minister Boris energy demands of three million people in coun-
Johnson when announcing the deal at the Com- tries most at risk to the impacts of the climate
monwealth Business Forum in Rwanda. “I see a emergency,” said Vicky Ford, the UK’s Minister
fantastic future for all of us in these initiatives. for Africa.
We want to be the partner of choice for our Afri- Norfund was instrumental in building a firm
can friends as you transform millions of lives.” known as SN Power into a leading hydropower
BII and Norfund hold a 49% stake in Scatec’s company in developing countries, which was
hydropower portfolio, which includes a mixture sold to Scatec, a Norwegian company, in Janu-
of operating assets and assets under develop- ary 2021. The parties agreed to collaborate on
ment, including Ruzizi III, a proposed 205MW SN Power’s projects in Africa, under new Scatec
hydropower plant that will provide electricity to ownership, whereby Norfund retained a 49 %
Rwanda, Burundi and the Democratic Republic stake, which will now be shared equally with BII.
of Congo. “This strong partnership and investment by
The 120MW Volobe hydropower plant in BII will support our concerted effort to boost the
Madagascar and 350MW Mpatamanga project continent’s renewable energy drive and deliver
in Malawi also feature in the joint venture’s plans. affordable and clean energy to the world,” Scatec
BII said in a June 23 press release that assets chief executive Terje Pilskog said, announcing it
under development are aligned with the Paris had committed an additional $100mn
agreement to support respective countries in
Week 26 30•June•2022 www. NEWSBASE .com P9
