Africa50 commits $100 million to accelerate renewable energy deployment across Africa

The pan-African infrastructure investor and asset management Group, Africa50, has pledged to invest $100 million to fund and co-finance renewables-based energy transition projects and infrastructure across Africa.

According to a statement, the investment is a sequel to an agreement between Africa50 and the International Renewable Energy Agency (IRENA). It added that the investment would be channeled through IRENA’s Energy Transition Accelerator Financing (ETAF) platform.

The statement from IRENA further disclosed that the agreement was signed on Tuesday on the margins of the OPEC Fund Development Forum in Vienna by IRENA Director-General, Mr. Francesco La Camera and Africa50 CEO, Mr. Alain Ebobissé.

Renewables as solution to Africa’s electricity problem

Commenting on the investment pledge, IRENA’s DG, La Camera said it reinforces efforts towards sustainable development and climate action across the continent.

“For the first time in a decade, the most recent data show that the number of people without access to electricity has increased significantly.

“With Sub-Saharan Africa representing the majority of those impacted, we must be diligent and committed to urgently addressing this growing issue. Renewables represent the most effective, climate-safe solution available, and this partnership with Africa50 will be pivotal in strengthening the ETAF Platform’s impact across Africa, he said.

The CEO of Africa50, Ebobissé, also commented:

 “The continent must focus on the dual goals of reducing emissions and accelerating economic development. Investing in and developing transformational renewable infrastructure is a critical step to achieving net-zero.

“The IRENA ETAF platform will be an important launchpad to scaling and accelerating our investments into renewable projects that will ultimately reduce the negative impact of climate change on our people and help build a more sustainable future”. 

What you should know

The ETAF platform, established in 2021 with support from the United Arab Emirates, aims to scale up renewable energy projects that contribute to Nationally Determined Contributions (NDCs) in developing countries, while also bringing benefits to communities through enhanced energy access and security, and promoting economic growth and diversification.

• With Africa50 now on board, the ETAF Platform has grown to include 14 partners, pledging a total of 4.15 billion USD, highlighting its role as one of the most inclusive financing platforms for a renewables-based energy transition.
• The partnership leverages IRENA’s global membership to attract project proposals through the ETAF Platform and Africa50’s expertise in project development and equity financing.
• Similar to the ETAF project, the World Bank in December last year approved the Nigeria Distributed Access through Renewable Energy Scale-up (DARES) project, being financed by a $750 million International Development Association (IDA) credit.
• According to the World Bank, the DARES project aims to provide over 17.5 million Nigerians with new or improved access to electricity through distributed renewable energy solutions. It added that the project would use innovative financing solutions to scale up private sector-led clean electricity provision in Nigeria.