AfDB Approves $164 Million for Clean Energy Projects to Power Six Million Africans

Millions of people in Africa who do not have electricity may soon get power as the African Development Bank (AfDB) has approved a new funding package worth up to $164 million for clean energy projects.

The funding will support decentralised renewable energy projects in Ghana, Guinea, Ethiopia, Kenya, Nigeria and Tunisia. The projects are expected to help provide electricity to about six million people.

The approval came through the bank’s Leveraging Energy Access Finance Framework (LEAF), a programme designed to support companies that provide off-grid and renewable energy solutions.

Six million people expected to benefit

The LEAF programme has a total value of $800 million. It aims to increase investment in renewable energy businesses operating in the six participating countries.

AfDB said 18 decentralised renewable energy projects are expected to receive financing under the programme. These projects include solar home systems, mini-grids and other power solutions for homes, businesses and industries.

The bank said the projects will help expand electricity access in areas where many people still live without stable power supply.

A recent Sustainable Development Goal 7 report showed that nearly 600 million people in Africa do not have access to electricity. The situation became worse during the Covid-19 pandemic when many infrastructure projects and investments slowed down.

Clean energy projects to reduce emissions

Apart from improving electricity access, the programme is expected to support environmental goals.

AfDB said the projects could prevent about 28.8 million tonnes of carbon dioxide emissions during the lifetime of the energy systems.

The LEAF programme was developed by AfDB in partnership with the Green Climate Fund. In July 2021, the Green Climate Fund approved $170.9 million in concessional financing to support the initiative.

Kevin Kariuki, AfDB Vice President for Power, Energy, Climate Change and Green Growth, said the partnership would help speed up access to electricity through decentralised renewable energy solutions.

He said the programme would also encourage private sector participation through local currency financing and commercial capital support.

The LEAF framework forms part of AfDB’s wider strategy to improve electricity access through off-grid energy systems under its New Deal on Energy for Africa.

The latest approval comes shortly after the bank approved a $379.6 million financing facility for the Desert to Power G5 Sahel scheme, which covers Burkina Faso, Chad, Mali, Mauritania and Niger.