- The GCF has approved $170m in financing for AfDB’sLEAF programme.
- The programme aims to strengthen local financing for clean energy in 6 African countries.
- The project is expected to cost $900m.
The Board of the Green Climate Fund (GCF) has approved $170.9 million in financing for the African Development Bank’s Leveraging Energy Access Finance Framework (LEAF) program. The LEAF programme aims to unlock commercial and local-currency financing for decentralized renewable energy (DRE) projects in six countries: Ghana, Guinea, Ethiopia, Kenya, Nigeria and Tunisia.
GCF’s financing is part of an overall $900 million program budget whose objective is to scale up the roll-out of mini-grids, solar home systems, and commercial and industrial solar solutions in the six countries.
Tony Clamp, acting Director of GCF’s Private Sector Facility, said, “GCF is delighted to partner with the African Development Bank to support this timely and critical program for decentralised renewable energy across these six African countries. Green Climate Fund’s commitment will help unlock much-needed commercial capital and local currency financing to help overcome financing barriers exacerbated by Covid-19.”
The programme is expected to provide clean energy to 6 million people and businesses while preventing about 28.8 million tonnes of CO2 emissions over the lifetime of the solar systems.
The LEAF programme will deploy credit enhancement instruments and technical assistance to strengthen capital markets and attract private sector investors, especially local financial institutions and enhance their financial and technical capacity to finance businesses in the fast-growing DRE market segment. The programme will also support strengthening the enabling environment for increased private sector investment.
Dr Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth, noted that “GCF’s approval of LEAF is a significant boost for the African Development Bank’s twin ambitions of accelerating electricity access and supporting the transition to clean energy on the continent using decentralized renewable energy solutions, and facilitated through local financing.”