The International Solar Alliance (ISA) and Africa50 have signed a historic agreement to launch the Africa Solar Facility (ASF).
The ASF will mobilize $200 million to boost renewable energy in Africa. The signing took place during the Africa Investment Forum Market Days in Rabat, Morocco.
The Africa Solar Facility will unlock financing for small-scale renewable energy projects. It aims to address the lack of investment in distributed renewable energy solutions. These projects are vital for providing clean energy access to millions of Africans.
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Aims to Boost Renewable Energy in Africa
The ASF will provide tailor-made financing to reduce risks for investors. It is the first regional facility under ISA’s Global Solar Facility.
Africa50’s CEO, Alain Ebobissé, expressed gratitude for the trust placed in his organization. He said, “We appreciate the trust the International Solar Alliance has shown in Africa50 to manage this important facility.
“Leveraging our expertise in project development and Project Finance in Africa, we will drive the objectives of this facility, and ultimately support the continent’s energy transition goals.
“This partnership also underscores the objectives of this year’s Africa Investment Forum of leveraging innovative partnerships to scale critical infrastructure for our continent’s growth.”
The ASF seeks to overcome challenges faced by renewable energy projects due to small ticket sizes and high perceived risks.
ISA Director General Dr. Ajay Mathur emphasized the importance of the initiative. He stated, “Only 3% of global solar investment in solar energy is reaching Africa.
The percentage is even smaller for Decentralized Renewable Energy (DRE). The Africa Solar Facility payment guarantee will provide confidence to investors so they can invest in DRE applications in the continent.”
This collaboration highlights Africa50’s role as a key partner in Africa’s energy transition. It also aligns with ISA’s goal to accelerate solar energy deployment globally.