- The Afrigreen Debt Impact Fund has achieved its first financial closing with the mobilisation of €87.5 million.
- The funding will support solar energy production to power small and medium-sized enterprises (SMEs) in Africa.
Afrigreen Debt Impact Fund, which has finished its first round of fundraising. 87.5 million from a number of global financial institutions, including the International Finance Corporation (IFC), the World Bank’s subsidiary, the Finland-IFC Blended Financing for Climate Program, and the Belgian Investment Company for Developing Countries (BIO).
Together with the French private banks Société Générale and BNP Paribas, Proparco, a division of the French Development Agency (AFD), is taking part in this round of financing. This financing effort, which is being assisted by Echosys Invest, aims to aid small and medium-sized businesses (SMEs) in their transition to solar photovoltaic systems from fossil fuel generators.
Businesses can lower their carbon footprint and save money on their electricity bills by switching to solar power. The Afrigreen Debt Impact Fund will invest in projects and assets for local and foreign developers as well as commercial and industrial (C&I) businesses as part of its activities in Africa, mainly in West and Central Africa.
According to Rgreen Invest, the Local Currency Financing Facility (LCF), which “substantially” lowers foreign exchange risk, allows the Afrigreen fund to offer long-term local currency financing in Ghana and Nigeria. The fund hopes to close the finance gap for renewable energy in Africa through this financial mobilization.