The AfDB (African Development Bank) has announced a $50 million facility, seeking to support Africa’s renewable energy sector by providing relief and recovery capital to ensure they survive and thrive despite the coronavirus pandemic.
This unfolds after the AfDB Board of Directors approved a $20 million concessional investment from SEFA (Sustainable Energy Fund for Africa) that aims at the formation of the COVID-19 Off-Grid Recovery Platform (CRP).
According to the Development Bank, the $20 million will be blended with their own capital and instruments, approximated at $30-$40 million in complementary commercial funding, going a long way to avail more affordable debt products.
The recovery platform seeks to support energy access companies to commercialize and deploy solar home systems, green mini-grids, clean cooking, etc.
The platform will also provide immediate relief and recovery support, in addition to laying the foundation for a green and inclusive economic recovery post-COVID-19.
The relief and recovery capital will support businesses in mitigating the pandemic’s impacts and ensuring a robust commercial recovery of the industry. It has already been endorsed by leading industry associations, including the Alliance for Rural Electrification (ARE), Africa Mini-Grid Developers Association (AMDA), and the Global Off-Grid Lighting Association (GOGLA).