Page 6 - AfrElec Week 07 2022
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AfrElec ENERGY GAP AfrElec
NORAD commits $56mn
grant to African Trade
Insurance Agency
AFRICA THE Norwegian Agency for Development Development Bank KfW launched RLSF in 2017
Cooperation (NORAD) has committed to pro- to tackle climate change and attract investments
vide NOK500mn ($56mn) in grant funding by supporting renewable energy projects.
to the Nairobi-based African Trade Insurance RLSF addresses short-term liquidity risks in
Agency (ATI) over an initial period of five years. financing of small and medium-sized renewable
“This innovative instrument helps unlock energy projects in sub-Saharan Africa, by com-
the private finance needed to bridge the energy bining ATI’s suite of insurance products with a
access gap, while also contributing to reduced liquidity support instrument.
greenhouse gas emissions,” NORAD direc- RLSF has supported four solar projects in
tor-general Bård Solhjell said in a press release. Burundi and Malawi, enabling over $150mn in
The grant will support the continued imple- project financing and installed capacity of 108.5
mentation of ATI’s Regional Liquidity Support MW. ATI has supported other renewable energy
Facility (RLSF), which aims to mobilise private projects across its member countries, enabling
investment into renewable energy projects in an installed capacity of over 500 MW.
Africa while contributing to achieving the UN ATI’s current gross exposure in direct sup-
Sustainable Development Goals 7, 8 and 13. port towards the generation of renewable energy
The grant will also support the development transactions stands at $210mn with the grant
of additional insurance or guarantee products in and support from NORAD, this exposure is
support of small and medium-sized renewable poised to increase in the long term.
energy sector initiatives. RLSF can be accessed by IPPs located in ATI
The funding from NORAD, which will be member countries that sign onto RLSF Mem-
split across first loss cash collateral for the var- orandum of Understanding (MoU). Benin,
ious initiatives and technical assistance support Burundi, Côte d’Ivoire, Madagascar, Malawi,
for ATI, will be provided by the Norwegian Min- Uganda and Zambia already signed the MoU
istry of Foreign Affairs. with the expectation more of ATI’s 20 member
ATI provides political risk, credit insur- countries will follow.
ance and surety insurance. ATI and German
P6 www. NEWSBASE .com Week 07 17•February•2022
