- The two companies are in partnership to finance green energy projects in Africa.
- The fund will mobilise $200 million for renewable energy professionals.
The Paris-based Eiffel Investment Group, in partnership with Finergreen, an investment advisory firm dedicated to renewable energy, is set to launch an initiative to boost financing for renewable projects. Already active in Europe, the new facility will focus on energy transition and electrification in Africa.
Eiffel noted that the initiative aims to address the growing demand for bridge financing in Africa. “As is often the case, raising capital from international investors, multilateral organisations, development banks, and local partners can be a long and complex process. Also, the unavailability of long-term capital when projects are ready to enter the construction phase is a major factor in the slow deployment of renewable energy on the continent,” head investment company Fabrice Dumonteil stated. This type of financing aims to bridge the gap between an unforeseen event and a long-term financing solution to avoid a liquidity shortage.
The European Investment Bank (EIB) is set to become the largest contributor to this fund dedicated to Africa. The European Union (EU) development bank has just launched the verification process to invest 30 million euros. According to Eiffel, other European and international financial institutions are evaluating the possibility of contributing to establishing this mechanism for financing electrification via renewable energy in Africa.