Africa50 Joins Forces With IRENA, Pledges $100 Million For Renewable Energy In Africa

The International Renewable Energy Agency (IRENA) has formed a significant partnership with Africa50, an infrastructure investor and asset management group in Africa. This collaboration aims to enhance renewable energy projects across the continent.

The agreement was signed at the OPEC Fund Development Forum in Vienna by IRENA Director-General Francesco La Camera and Africa50 CEO Alain Ebobissé. As part of this deal, Africa50 has committed up to US$100 million to support and co-finance renewable energy transition projects through IRENA’s Energy Transition Accelerator Financing (ETAF) platform.

La Camera highlighted the urgency of addressing the growing issue of electricity access in Sub-Saharan Africa. "For the first time in a decade, the most recent data show that the number of people without access to electricity has increased significantly," he said. "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."

The ETAF platform, established in 2021 with support from the United Arab Emirates, aims to scale up renewable energy projects that contribute to Nationally Determined Contributions (NDCs) in developing countries. It also seeks to enhance energy access and security while promoting economic growth and diversification.

Africa50's CEO Alain Ebobissé emphasised the dual goals of reducing emissions and accelerating economic development. "The continent must focus on the dual goals of reducing emissions and accelerating economic development. Investing in and developing transformational renewable infrastructure is a critical step to achieving net-zero," he stated.

With Africa50 joining, the ETAF Platform now includes 14 partners pledging a total of US$4.15 billion. This highlights its role as one of the most inclusive financing platforms for a renewables-based energy transition.

Future Initiatives

Later this year, on September 1st, 2024, IRENA will co-host the Accelerated Partnership for Renewables in Africa (APRA) Investment Forum with Kenya's government. This event aims to connect project developers with potential financiers through a curated matchmaking programme.

The partnership leverages IRENA’s global membership to attract project proposals through the ETAF Platform and Africa50’s expertise in project development and equity financing.

This collaboration between IRENA and Africa50 represents a significant step towards sustainable development and climate action across Africa. By focusing on renewable energy projects, it aims to address urgent issues like electricity access while promoting economic growth.

With inputs from WAM