Africa is on the brink of an energy revolution, and the African Climate Foundation (ACF) is excited to partner with Renew2030, a coalition committed to driving this transformation. Renew2030 aims to scale global wind and solar capacity to meet the 1.5°C global warming limit while boosting energy security, creating jobs, and delivering numerous health, climate, and economic benefits.
In this context, ACF is proud to highlight its recent collaboration with Konexa, which has been instrumental in developing Nigeria’s first private renewable electricity trading platform. This groundbreaking project showcases how strategic philanthropic efforts can unlock significant private-sector investment on a large scale.
ACF’s approach focuses on creating favourable conditions for investment, particularly in renewable energy sectors that require patient, early-stage capital. For Konexa, ACF’s support was crucial during a pivotal transition from its initial project to the next development phase. This support included feasibility studies and capacity-building efforts, helping Konexa secure $16.29 million in MIGA guarantees and $18 million in blended finance.
This initiative represents a significant advancement for Nigeria’s energy sector. As one of the first companies to receive a private energy trading license from the Nigerian Energy Regulatory Commission (NERC), Konexa will source renewable power from independent power producers (IPPs) and sell it directly to private clients. Their first client, Nigeria Breweries PLC, will transition two of its facilities in Kaduna State to 100% renewable energy from the 30MW Gurara Hydro Power Plant. This shift is expected to reduce over 8,000 tons of CO2 emissions annually, contributing significantly to Nigeria’s climate goals.
This partnership demonstrates the vital role of philanthropic support in catalysing private investment in clean energy. For ACF, strategic interventions often make the difference between a project remaining conceptual or moving into implementation. By addressing key barriers such as early-stage funding, capacity building, and feasibility studies, ACF has unlocked tens of millions of dollars in investment, creating lasting impacts on Nigeria’s energy infrastructure.
The financing milestone achieved with Konexa has paved the way for further investments. ACF’s support has positioned Konexa to pursue additional funding, with ongoing discussions involving Climate Fund Managers (CFM) and other institutional investors to secure financial backing for further project development. These funds will help Konexa advance two more renewable energy projects, which are expected to reach financial close by 2025. This continued growth would not have been possible without ACF’s early involvement, which de-risked the project for more prominent investors and enabled Konexa to secure match funding commitments from their investors.
ACF has developed a platform approach that addresses systemic barriers to investment by creating an ecosystem that nurtures and accelerates clean energy development. This approach focuses on building capacity, influencing policy, and addressing critical infrastructure gaps, ultimately enabling large-scale investments in climate-resilient sectors across Africa.
“Our focus is on achieving concrete outcomes that impact the real economy. We have concentrated much of our efforts on Climate and Development Investment Platforms, moving away from traditional philanthropic activities. This strategic pivot positions ACF to adopt more comprehensive, action-oriented approaches that leverage political alignment, policy reform, and investment facilitation to scale transformative projects,” said Saliem Fakir, Executive Director of ACF.
In the case of Konexa, this platform approach was crucial in securing financing and enhancing the broader resilience and sustainability of Nigeria’s energy system through electricity trading. The success of this partnership highlights the power of combining philanthropic support with innovative private-sector solutions to address critical challenges like energy access and sustainability across Africa.