Africa-focused solar fund reaches first close at EUR 87.5m

French independent asset manager Rgreen Invest and Echosys Advisory have reached the first closing of a new fund dedicated to the African solar sector that targets up to EUR 100 million (USD 105.4m) in investments.

The first closing of the Afrigreen Debt Impact Fund has secured EUR 87.5 million in gross financing commitments, Rgreen said on Friday. The raised proceeds will be allocated to finance both on- and off-grid solar power plants that will be installed to displace fossil fuel generation. The projects will be for small and medium-sized commercial and industrial consumers (C&S) across Africa.

The European Investment Bank (EIB), the International Finance Corporation (IFC), Belgian Investment Company for Developing Countries (BIO) and French Proparco participated in the funding round.

The Afrigreen Debt Impact Fund is managed by Echosys Invest, a 50/50 joint venture between Rgreen and Echosys set up in 2021. The fund’s ultimate goal will be to bridge the funding gap in the African renewable energy market through direct lending and asset-based debt facilities, with a major focus to be put on West and Central Africa. Additionally, it will offer long-term currency financing in Ghana and Nigeria in order to lower the foreign exchange risk.

(EUR 1.0 = USD 1.054)

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