Investment into Africa’s grid of the future

Camco, a climate and impact fund manager, has reached first close for its new REPP 2 debt fund

The fund aims to deliver significant climate, economic, and gender impacts while ensuring sustainable returns for investors in Africa’s renewable market. It is structured as a blended finance vehicle to leverage public and private investors to invest in sub-Saharan Africa’s distributed and small-scale renewable energy market.

With backing from the Green Climate Fund (GCF), Norfund, FMO, BIO, Ceniarth, and the Renewable Energy Performance Platform (REPP), Camco reached first close on US$107mn for the REPP 2 debt fund to invest in the African grid of the future. There is also a further US$78mn committed that is subject to conditions.

“Africa’s energy transition is happening. It is critical to invest in the businesses building the African energy grid of the future, which is decentralised, renewable and reliable,” remarked Ben Hugues, REPP 2 director at Camco. “This requires significant and urgent scaling up of finance to enable innovative companies to scale and generate both attractive returns and significant climate impact. It is so exciting to have so many world-leading investors on board who share our vision for Africa’s future and recognise the critical role of blended finance in the sector.”

REPP 2 is dedicated to supporting the decarbonisation of the African energy system while contributing towards closing the US$22bn annual investment gap. Across its lifetime, the fund aims to facilitate the addition of 330MW of new capacity and will provide clean energy access to more than 7.7 million people.

“The Green Climate Fund is proud to be supporting REPP 2,” said Kavita Sinha, private sector facility director at the GCF. “By catalysing innovative business models and capital for clean energy solutions in a region most vulnerable to climate change, we are not only advancing the region's sustainable development, but also contributing to global efforts to combat climate change. This commitment represents a significant step forward in building a low-carbon, resilient future for the communities of sub-Saharan Africa while unlocking new opportunities for economic growth and energy access.”

Diane Isenberg, founder and managing director of Ceniarth, added, “As a private investor in the energy access sector for the past decade, Ceniarth has seen firsthand the opportunities and challenges in bringing reliable electrification to underserved communities in Africa. We are proud to be supporting Camco as the firm brings the right mix of hard-earned experience and expertise to finance the deployment of a range of energy solutions, from solar PV mini-grids to grid-connected projects, at scale.”