- The Norwegian Agency for Development Cooperation (NORAD) is providing a $56 million grant to the Africa Trade Assurance Agency (ATI).
- African RE developers are set to benefit.
The Norwegian Agency for Development Cooperation (NORAD) is granting $56 million to the Africa Trade Insurance Agency (ATI) to support Africa’s renewable energy development. The funding aims to enhance the Regional Liquidity Support Facility (RLSF), as well as the establishment of additional insurance to support small and medium-sized renewable energy initiatives.
The RLSF is a partnership between ATI and Kreditanstalt für Wiederaufbau (KFW), the German development agency. The mechanism aims to mitigate climate change through support for renewable energy production. According to the ATI, the RLSF is designed to address the short-term liquidity risks faced by independent power producers (IPPs) that sell electricity to state-owned utilities in sub-Saharan Africa.
While welcoming the NORAD grant, Manuel Moses, ATI’s executive director, said, “This partnership is timely, as Africa is experiencing increased interest from the public and private stakeholders in renewable energy. This grant will enable ATI to support more projects to reach financial close, increasing not only power generation capacity but also sustainable economic growth in Africa”.