The Board of Directors of the African Development Bank (AfDB) has approved $32.5 million for equity investment in Climate Investor One’s Construction Equity Fund (CEF).
The CEF “is a platform that uses a unique blended finance approach, and targets the entire asset life cycle to deliver viable renewable energy projects to the market.”
The fund will provide capital, technical assistance for viable energy projects in Africa and help them go to market.
Climate Fund Managers (CFM), a joint venture between Netherlands Development Finance Company (FMO) and Sanlam InfraWorks, will manage the new investment in CEF.
According to Amadou Hott, AfDB’s Vice President for Power, Energy, Climate Change and Green Growth,
“Significant investments are required to close the infrastructure gap and meet energy access goals. The Bank’s investment in the Fund will complement its operations in the energy sector, and unlock at least an additional $40 million dollars of investments into Africa. With nearly 600 million Africans without access to energy, there is a huge market for the Fund to invest and generate a return for its investors.”
The CEF will have a measurable social and environmental impact by supporting the establishment of clean energy projects in developing markets, by creating jobs and providing access to electricity in an under-developed market.
Nigerian startups raised $17.6m in Q1 2019, 8.5% higher than they did in Q1 2018. Find out more in the latest quarterly edition of the Nigerian Startup Funding Report here.