The Board of Directors of the African Development Bank (AfDB) has approved $20 million as concessional investment for the Fund for Sustainable Energy in Africa (SEFA), APA can report on Monday.
By Abdourahmane Diallo
These funds will facilitate the establishment of the Off-Grid Infrastructure Reconstruction Platform (IRP), with mixed funding of $50 million.
This comes following the adverse effects of the Covid-19 pandemic.
This initiative aims to provide assistance and recovery capital to energy access companies, supporting them during and after the pandemic, an AfDB statement shared with the African Press Agency said.
The $20 million concessional funding will be increased with their own capital and instruments, which will leverage $30 million to $ 40 million in additional trade finance and provide more affordable borrowing products, the statement added.
It said thanks to its partners, the re-launch platform will support energy access companies that market and deploy solar home systems, green mini-grids, clean cooking systems and other decentralized renewable energy solutions.
“This platform will allow us to save time by providing tailored financial solutions by leveraging existing resources, expertise and infrastructure in the sector,” the statement quoted the Director of the Bank’s Renewable Energy Division, Joao Duarte Cunha, as saying.
The platform will provide immediate relief as well as recovery support and lay the foundation for a green and inclusive economic recovery from the pandemic.
ARD/cgd/fss/as/APA