GCF approves $ 170.9 million in co-financing for AfDB’s LEAF program –
The Board of Directors of the Green Climate Fund has approved funding of $ 170.9 million for the African Development Bank’s Energy Access Financing Framework Program.
LEAF aims to unlock commercial and local currency financing for decentralized renewable energy projects in six countries: Ghana, Guinea, Ethiopia, Kenya, Nigeria and Tunisia.
The funding for the Green Climate Fund is part of a global program budget of $ 900 million aimed at scaling up the deployment of mini-grids, solar home systems, and commercial and industrial solar solutions in communities. program country.
Tony Clamp, Acting Director of the GCF Private Sector Facility, said: “GCF is delighted to partner with the African Development Bank to support this timely and essential program for decentralized renewable energy in these six countries. Africans. The Green Climate Fund’s commitment will help unlock much needed business capital and local currency financing to help overcome financing barriers exacerbated by Covid-19. “
Under LEAF, Africa’s abundant solar resources will be harnessed to provide renewable energy to 6 million people and businesses, and will also prevent 28.8 million tonnes of CO2 emissions over the course of the lifespan of the systems.
By deploying credit enhancement instruments and technical assistance, LEAF will strengthen capital markets and attract private sector investors, including local financial institutions, thereby improving their financial and technical capacity to finance businesses in the market segment. Fast growing DRE comprising solar home systems, green mini-grids and solar solutions for commercial and industrial sectors.
The program will also provide the necessary support to strengthen the enabling environment and increase private sector investment in this market segment.
“The approval of LEAF by the GCF is an important impetus for the African Development Bank’s dual ambition to accelerate access to electricity and support the transition to clean energy on the continent using sustainable solutions. ‘decentralized renewable energy, and further facilitated by local financing, ”said Dr Kevin Kariuki, the African Development Bank’s vice president for electricity, energy, climate and green growth.
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