GCF approves USD 50m for new Camco fund to back African renewables

The Green Climate Fund (GCF) announced on Wednesday that its board has approved the allocation of USD 50 million (EUR 47.3m) in equity to a new debt fund targeting investments in Sub-Saharan Africa’s renewable energy market.

The equity financing will be set aside for the USD-250-million REPP 2 private debt fund developed by climate and impact fund manager Camco.

REPP 2 builds on another Camco-managed fund -- the Renewable Energy Performance Platform (REPP), which was created in 2015 and has, to date, invested in 43 renewable energy companies and projects across 20 countries. About 387MW of renewables have been installed or are under development thanks to that fund.

Furthermore, an additional equity investment of up to USD 50 million from REPP into REPP 2 is outlined in an indicative term sheet signed by the REPP Board. This means that REPP 2 is to receive combined junior equity investments of up to USD 100 million.

The new fund is expected to make between 35 and 40 investments in decentralised renewables and provide some 7.7 million people with new or improved access to electricity. The countries that could benefit from the funding include Cameroon, the Democratic Republic of Congo (DRC), Lesotho, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, and Zambia.

(USD 1.0 = EUR 0.945)

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