The African Development Bank (AfDB) Group has approved “an equity investment of up to $25 million in ARCH Africa Renewable Power Fund (ARPF), a $250 million private equity fund for renewable energy projects across Sub-Saharan Africa.”
The approved fund is in line with the bank’s 10-year Strategy and High-Five priorities, (specifically the New Deal on Energy for Africa) which aims to achieve universal access by 2025.
According to the announcement published on the AfDB website, in addition to about 533MW of installed energy generation capacity from renewable energy in Sub-Saharan Africa, ARPF will provide equity for the development and construction of 10 to 15 greenfield renewable energy projects in the region.
The projects to be funded are expected to be focused on various power generation sources including wind, solar photovoltaic (PV), small to medium hydro, geothermal and biomass. This also includes rid-connected independent power producers (“IPPs”), and decentralized energy projects (commercial & industrial solar, mini-grids and solar home systems companies).
Through this move, the bank wants to motivate other investors to fund the cause with up to $75 million. It also aims to create at least 272 full time jobs and 5,530 part time jobs.
According to AfDB, the fund will prioritise projects with “clear timeline to financial close, with emphasis on de-risking early stage greenfield projects.” It is expected to reach first close in early 2019.
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.