The Green Climate Fund (GCF) has approved $170.9 million in financing for the African Development Bank’s leveraging energy access finance framework (LEAF) program.
The LEAF aims to unlock commercial and local-currency financing for decentralised renewable energy (DRE) projects in six program countries: Ghana, Guinea, Ethiopia, Kenya, Nigeria and Tunisia.
AfDB, in a statement on Wednesday, said the climate financing is part of an overall $900 million programme budget with the aim of scaling up roll-outs of mini-grids, solar home systems, commercial and industrial solar solutions in the programme countries.
The programme, which would be harnessed to provide renewable energy to six million people and businesses, would also prevent 28.8 million tonnes in carbon emissions and is expected to strengthen capital markets and crowd-in private sector investors, including local financial institutions.
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Tony Clamp, acting director, private sector facility, GCF, said the partnership with AfDB will support the timely and critical programme for decentralised renewable energy across the six African countries.
“Green Climate Fund’s commitment will help unlock the much-needed commercial capital and local currency financing to help overcome financing barriers exacerbated by COVID-19.”
Kevin Kariuki, vice-president for power, energy, climate and green growth at AfDB, described the approval of LEAF as a significant boost to the bank’s electricity and clean energy plans in Africa.
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“GCF’s approval of LEAF is a significant boost for the African Development Bank’s twin ambitions of accelerating electricity access and supporting the transition to clean energy on the continent, using decentralised renewable energy solutions and moreover, facilitated through local financing.”
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