Green Climate Fund Approves $50M Equity Investment in REPP 2 to Boost Renewable Energy in Sub-Saharan Africa
The Green Climate Fund (GCF) has approved a $50 million equity investment in REPP 2, a new debt fund aimed at accelerating investment in Sub-Saharan Africa’s renewable energy market. Developed by climate and impact fund manager Camco, REPP 2 is a $250 million fund designed to deliver climate, economic, and gender impacts while ensuring sustainable returns for investors. The fund will focus on small-scale and decentralized renewable energy projects, contributing to economic development in Sub-Saharan Africa and providing clean, reliable, and affordable power to approximately 7.7 million people.
- GCF Investment Approval:
- The Green Climate Fund (GCF) has approved a $50 million equity investment in REPP 2, a debt fund developed by climate and impact fund manager Camco. REPP 2 aims to accelerate investment in Sub-Saharan Africa’s renewable energy market.
- REPP 2 Overview:
- REPP 2 is structured as a blended finance facility, leveraging public, private, and commercial funding to invest in small-scale and decentralized renewable energy projects in Sub-Saharan African countries. The $250 million fund is expected to make 35-40 investments, promoting economic development and resilience to climate change.
- Access to Electricity in Sub-Saharan Africa:
- Research indicates that approximately 590 million people in Sub-Saharan Africa lack access to electricity. REPP 2 aims to address this challenge by supporting renewable energy projects that provide clean, reliable, and affordable power to communities in the region.
- Climate and Economic Impacts:
- Over REPP 2’s lifetime, the fund is projected to mitigate 12.7 million tonnes of carbon dioxide equivalent in greenhouse gas emissions. Additionally, it will contribute to economic opportunities and access to productive energy use activities in Sub-Saharan Africa.
- Blended Finance Structure:
- REPP 2 represents an evolution from the $120 million REPP facility, incorporating a blended finance structure to attract private sector funds. The fund aims to unlock significant additional investment capital for climate-related projects on the continent.
- Gender Lens Investing:
- REPP 2 will invest $70 million in projects aligned with 2X’s gender lens investing criteria. The fund is expected to mobilize $786 million in third-party funding to support green growth in target countries.
The Green Climate Fund’s approval of a $50 million equity investment in REPP 2 marks a significant step toward accelerating renewable energy investment in Sub-Saharan Africa. With its blended finance structure, REPP 2 aims to attract private sector funds, contribute to climate resilience, and provide clean and affordable power to millions of people in the region, fostering economic development and sustainability.