African renewables investment fund raises $100 million

• 10 years ago (2014-03-14)
• Junior Isles

Africa 320 North America 1021 Renewables 776

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The African Renewable Energy Fund (AREF) reached its first close this week, with $100 million worth of capital committed for investment in small and medium sized renewable energy projects in Sub-Saharan Africa.

The fund is to be run out of Nairobi by Berkeley Energy, a Mauritius-based firm specialising in the emerging markets of Asia and Africa.

The aim is to attract a further $100 million to support hydro, wind, geothermal, solar, biomass and waste gas projects by its final close.

AREF will target independent power providers (IPPs), with between 5-50 MW of capacity, with per project funding between $10-30 million.

AREF has been promoted by the African Development Bank and the African Biofuel and Renewable Energy Company (Abrec).

The Africa Development Bank has invested $65 million in the programme, and other investors include the West African Development Bank, Dutch development bank FMO, West African development bank Ecowas and the US-based investor/charity the Calvert Foundation.

Thierno Bocar Tall, CEO of Abrec, has described the recent close as a “milestone for realising the potential of renewable energy in Sub-Saharan markets.”