European banks EIB, FMO boost Africa renewable energy initiative

European Investment Bank and FMO sign up to renewAfrica covenant

Luxembourg, LUX | THE INDEPENDENT | In a continued effort to back the development of renewable energy on the African continent, the EIB and FMO on Wenesday committed to support the “renewAfrica” initiative, championed by RES4Africa.

The renewAfrica Initiative is a new European multi-stakeholder backed initiative to accelerate Africa’s sustainable energy transition. The renewAfrica initiative was first signed in Rome on June 4^th this year by 23 partners, including energy partners like Enel Green Power and financiers such as Cassa Depositi e Prestiti, Intesa SanPaolo and Norfund.

The Renewable Energy Solutions for Africa (RES4Africa) Foundation promotes the deployment of large scale and decentralized renewable energy in African markets to meet local energy needs for growth.

According to experts, renewable energy will be key to boosting the energy transition of the African continent. “Only with sustainable and green sources will it be possible to respond to the growing demand for energy, triggered by faster and faster urbanization, and ensure energy access for all.”

The renewAfrica, according to a statement,  initiative will promote the creation of a holistic and inclusive European-led instrument with its own institutional framework, providing adequate support at policy and regulatory level, and ensuring preparation tools across project lifecycles, as well as financial de-risking and capacity building measures. It will be coordinated with other DFIs active in the Renewable Energy sector in Africa.

“There is undoubtedly a need to improve the way in which European financiers can support renewable energy projects on the African continent.” EIB Vice-President Andrew McDowell commented.

“As the world’s largest multilateral provider of climate finance in terms of lending volume, the EIB is very pleased to play an active role in renewAfrica. Bundling the strengths and experience of major European players can not only assist public institution in creating a favourable investment climate, but also lead to advisory and financial support for projects, so that they can tap the vast resources this continent offers for renewables.”

Apart from possibly providing financing and advisory services to concrete projects under the initiative, initially the EIB will seek a key role among the involved international financial institutions. RenewAfrica is expected to increase the number of bankable public-private-partnership projects in the African renewable energy sector, to be competitively tendered, which the EIB and other IFI’s could potentially support.