Africa50 Pledges $100m to Boost Africa’s Renewable Energy

Africa50, a leading pan-African infrastructure investment group, has pledged $100 million to accelerate renewable energy projects and infrastructure across Africa.

This $100 million investment stems from a collaboration agreement between Africa50 and the International Renewable Energy Agency (IRENA). The funds will be managed through IRENA’s Energy Transition Accelerator Financing (ETAF) platform.

IRENA revealed that the deal was formalised on Tuesday during the OPEC Fund Development Forum in Vienna, signed by IRENA Director-General Francesco La Camera and Africa50 CEO Alain Ebobissé.

Francesco La Camera stressed that this investment strengthens ongoing efforts towards sustainable development and climate action in Africa.

He said: “For the first time in a decade, the most recent data show that the number of people without access to electricity has increased significantly.

“With Sub-Saharan Africa representing the majority of those impacted, we must be diligent and committed to urgently addressing this growing issue.

“Renewables represent the most effective, climate-safe solution available, and this partnership with Africa50 will be pivotal in strengthening the ETAF Platform’s impact across Africa.”

On the other hand, Ebobissé emphasised the need for Africa to simultaneously reduce emissions and promote economic growth. He pointed out that investing in renewable infrastructure is essential for achieving net-zero emissions.

“The IRENA ETAF platform will be an important launchpad to scaling and accelerating our investments into renewable projects that will ultimately reduce the negative impact of climate change on our people and help build a more sustainable future.”

Launched in 2021 with backing from the United Arab Emirates, the ETAF platform focuses on expanding renewable energy projects that support Nationally Determined Contributions (NDCs) in developing nations, enhancing energy access and security, and fostering economic growth and diversification.

Africa50’s participation brings the number of ETAF Platform partners to 14, collectively pledging $4.15 billion, underscoring ETAF’s status as a leading inclusive financing platform for renewable energy transition.

This collaboration combines IRENA’s extensive global network to attract project proposals through the ETAF Platform with Africa50’s proficiency in project development and equity financing.

In a similar vein, the World Bank approved the Nigeria Distributed Access through Renewable Energy Scale-up (DARES) project last December, which is funded by a $750 million International Development Association (IDA) credit.

The World Bank stated that the DARES project aims to deliver new or improved electricity access to over 17.5 million Nigerians using distributed renewable energy solutions. The project will employ innovative financing to enhance private sector-led clean electricity initiatives in Nigeria.