The African Development Bank’s (AfDB) Leveraging Energy Access Finance Framework (LEAF) programme aims to unlock commercial and local currency financing for decentralised renewable energy (DRE) projects in Ghana, Guinea, Ethiopia, Kenya, Nigeria, and Tunisia as part of the Green Climate Fund’s (GCF) overall $501.1 million finance allocation for new climate projects.
The GCF’s financing programme aims to support the continent’s most vulnerable countries by expanding the rollout of mini-grids, solar home systems, commercial and industrial solar solutions, and providing renewable energy to six million people and businesses across Africa while reducing CO2 emissions by 28.8 million tonnes.
By using credit enhancement instruments and technical assistance, the framework is designed to boost local capital markets and financial institutions, as well as encourage private sector investment.
The acting director of GCF’s private sector facility, Tony Clamp, said: “GCF is delighted to partner with the AfDB to support this timely and critical program for decentralized renewable energy access across these six African countries.”
“GCF’s commitment will help unlock much-needed commercial capital and local currency financing to help overcome financing barriers exacerbated by COVID-19,” he added.
Speaking on behalf of the AfDB, Vice President for Power, Energy, Climate, and Green Growth, Dr Kevin Kariuki stated, “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 moreover, facilitated through local financing.”