The Board of Directors of the African Development Bank Group has approved a concessional investment of $20 million to support the second phase of the COVID 19 Off-grid Recovery Platform .
The platform is a blended financing initiative to launch private capital for energy providers to mitigate the negative effects of the pandemic while promoting access to clean electricity and ensuring a green economic recovery. The Sustainable Energy Fund for Africa (the Fund) , a multi-donor fund managed by the African Development Bank, will provide $7 million to finance the expansion, and the remaining $13 million will come from the Global Environment Facility (GEF) , a multilateral environmental fund. COVID 19 Off-grid Recovery Platform, The second phase will help provide an additional $70 million in financing to the energy supply sector in order to mitigate the ongoing effects of the pandemic on supply chains, inflation, the high cost of capital and the effects of the conflict in Ukraine. “Thanks to the concessional financing provided by the fund under the platform, the fund has been able to provide affordable financing solutions in markets such as Malawi and Sierra Leone that have helped companies mitigate the impact of increased currency volatility and higher logistics costs,” said Alex Graham, Head of Off-Grid Energy Savings Fund.
She described the platform as a partnership between development and the private sector that provides innovative financing solutions without distorting the market or displacing private capital. the continued support of the African Development Bank in order to accelerate progress towards achieving Sustainable Development Goal 7. The concessional financing provided under the platform’s second phase comes at a critical moment for the provision of companies. In the early stages of energy still affected by COVID-19, the Energy Entrepreneur Growth Fund is allowing to unlock flexible financing in the sector at a time when venture capital is becoming increasingly scarce.”COVID 19 Off-grid Recovery Platform, Through the platform partners, energy providers can access a wide range of flexible debt financing solutions on affordable terms. To date, more than $50 million in concessional financing has been approved for 12 energy-saving companies that market and deploy solar home systems, micro-grids, and commercial and industrial solar irrigation solutions. “Thanks to this strong partnership, we have been able to mobilize more than $140 million in patient capital to mitigate the unprecedented challenges faced by the energy-saving industry in Africa,” said Joao Duarte, Director of Renewable Energy Funds Division and responsible for the Sustainable Energy Fund for Africa at the African Development Bank. recent years and safeguarding progress towards universal access in Africa.
Source: This news is originally published by africa-newsroom.
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