The Board of Directors of the African Development Bank Group (AfDB) has approved the Leveraging Energy Access Finance Framework (LEAF) programme to promote investment in key sectors in Ghana and other African countries.
The US$800 million LEAF program is expected to help spur commercial and local currency investments. Under the programme, the Bank will commit up to US$164 million to promote decentralized renewable energy in six African countries to scale up the activities of decentralized renewable energy companies in such countries. The countries include: Ghana, Guinea, Ethiopia, Kenya, Nigeria, and Tunisia.
Under the LEAF Programme, some 18 decentralized renewable energy projects are expected to be financed, providing access to six million people and businesses, resulting in 28.8 million tonnes CO2 equivalent in greenhouse gas emission reductions over the lifetime of the systems.
Dr. Kevin Kariuki, the bank’s Vice-President in charge of Power, Energy, Climate Change and Green Growth, expressed his excitement over the programme, noting that it will accelerate access to renewable energy.
“The African Development Bank is delighted to partner with the Green Climate Fund on the Leveraging Energy Access Finance Framework, which will not only accelerate access to electricity based on decentralized renewable energy solutions, but reduce the respective countries’ carbon footprints. It will also do so with the active participation of a private sector facilitated by local currency financing and commercial capital availed under the programme.”
Dr. Kevin Kariuki
LEAF Approval Timely
Over six years, LEAF will deploy concessional finance, credit enhancement instruments and technical assistance to crowd-in private sector investors, including local banks, to finance and accelerate efforts to power the continent.
The Bank’s acting director in charge of Renewable Energy and Energy Efficiency Department, Dr. Daniel Schroth, lauded the approval of the programme, stating that it is a timely intervention.
“The approval of this program is very timely as it increases the Bank’s toolbox to support the fast-moving decentralized energy access market which complements conventional grid-connected solutions.”
Dr. Daniel Schroth
Many Africa Countries Still Lack Access to Electricity
Many African countries still face challenges in achieving universal access to sustainable, clean, affordable and reliable electricity. According to the latest Sustainable Development Goal (SDG) 7 tracking report, close to 600 million Africans lack access to electricity.
According to the SDG tracking report, as a result of the COVID-19 crisis, the number of people without access to electricity increased again for the first time in recent years.
The Bank’s acting director in charge of Renewable Energy and Energy Efficiency Department averred that scaling up decentralized renewable energy (solar home systems, green mini-grids, and solar solutions for commercial and industrial use) is crucial to achieving the SDG7 objectives and requires significant private sector and local currency financing.
The framework forms part of the Bank’s broader off-grid strategy under the New Deal on Energy for Africa and complements existing initiatives, such as the Sustainable Energy Fund for Africa.
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