UK government-backed investment vehicle Green Africa Power has signed London-based EISER Infrastructure Partners to advise on its long-term loans for privately-owned renewable energy projects in Africa’s least developed countries.
The initiative by the Private Infrastructure Development Group Trust, which was capitalised with an initial £95m, has agreed a five-year deal with the company under which it will work with South Africa-based Camco Clean Energy to identify, execute and manage projects eligible for GAP funding.
GAP said it will “invest alongside commercial lenders and equity investors” to stimulate private investment in the region with a focus on influencing the “overall policy environment for financing of renewable energy projects in each country in which it operates”.
Chairman Jim Cohen said: “We are confident that in EISER we have found a strong partner to help us deliver our mandate. The infrastructure investment expertise of EISER, complemented by the African and renewable energy experience of Camco, provides us with the ideal balance of skills for our future needs.”
According to recent World Bank reports, only 24% of the population of Sub-Saharan Africa has access to electricity and some 25 of the 54 nations in Africa are in “energy crisis”.
EISER partner Vivian Nicoli said: “Access to renewable and sustainable sources of energy is vital to economic development of Africa and we are proud to be taking a leading role in facilitating development in the region.”
GAP expects to start deploying funds to projects in the final quarter this year and plans to commit all funds currently raised within the next three years.