Kibo Energy seeks to buy 20-GW renewables pipeline in Europe, Africa
Sep 16, 2024 17:21 CESTThe European Investment Bank (EIB), German insurer Munich Re (FRA:MUV2) and the African Trade Insurance Agency (ATI) have launched a joint political risk reinsurance facility targeting to support the clean energy sector in Africa.
The Africa Energy Guarantee Facility (AEGF) is expected to lure around USD 1.4 billion (EUR 1.14bn) of private investment in the renewable energy, energy efficiency and energy access fields in 25 sub-Saharan African countries, the EIB said on Tuesday. Its objective will be to offer long-term insurance against non-payment under power purchase agreements, expropriation and breach of contracts, currency inconvertibility, war, civil unrest and arbitration award default.
The initiative is seen to have a “significant impact” on boosting new investment in Africa as companies are usually cautious to embark on new clean energy projects as they seek long-term protection for their investment against the changing political environment.
“The AEGF will remove a major obstacle for renewable energy investments in Africa,” commented Joachim Wenning, CEO of Munich Re. He added that for the German insurance company, the facility is “a blueprint for risk-sharing between insurers, reinsurers and international financial institutions.”
Technical assistance for the establishment of AEGF was provided through the EU-Africa Infrastructure Trust Fund, by EIB and EU Bank.
(USD 1.0 = EUR 0.815)
Kibo Energy seeks to buy 20-GW renewables pipeline in Europe, Africa
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