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GCF Approves $170.9 Million in Financing for AfDB’s Development Program

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As part of an overall $501.1-million finance allocation for new climate projects by the Green Climate Fund (GCF), the African Development Bank’s (AfDB) Leveraging Energy Access Finance Framework (LEAF) program intends to unlock commercial and local currency financing for decentralized renewable energy (DRE) projects in Ghana, Guinea, Ethiopia, Kenya, Nigeria and Tunisia.

With the objective of scaling up the rollout of mini-grids, solar home systems and commercial and industrial solar solutions in these countries, the GCF’s financing program aims to support the continent’s most vulnerable countries, providing renewable energy to six million people, and businesses, across Africa while eliminating 28.8 million tons of CO2 emissions.

The framework is also expected to strengthen local capital markets and financial institutions and attract private sector investments by deploying credit enhancement instruments and technical assistance.

“GCF is delighted to partner with the AfDB to support this timely and critical program for decentralized renewable energy access across these six African countries,” said Acting Director of GCF’s private sector facility, Tony Clamp “GCF’s commitment will help unlock much-needed commercial capital and local currency financing to help overcome financing barriers exacerbated by COVID-19.”

Commenting on behalf of the AfDB, Vice President for Power, Energy, Climate, and Green Growth, Dr. Kevin Kariuki stated, “GCF’s approval of LEAF is a significant boost for the African Development Bank’s twin ambitions of accelerating electricity access and supporting the transition to clean energy on the continent using decentralized renewable energy solutions, and moreover, facilitated through local financing.”

This financing program is expected to enhance the financial and technical capacity within Africa’s fast-growing DRE market, comprising solar home systems, green mini-grids and solar solutions within the continent’s commercial and industrial sectors, thus strengthening an enabling environment for private sector investment.

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Matthew Goosen

Matthew Goosen

Matthew Goosen is a Video Editor and Content Writer at Energy Capital & Power. He holds an Honours Degree in Film and Media Studies at the University of Cape Town and is currently undergoing his Masters Degree. Born in Pretoria and raised internationally, he has been living in Cape Town since 2013.