InfraCredit, a specialized credit guarantee institution for infrastructure, has partnered with the Africa Minigrid Developers Association (AMDA) to enhance access to long-term financing in local currency for mini-grid and distributed renewable energy (DRE) projects across Africa.
Key Objectives:
- Address Financing Barriers: The partnership aims to overcome financing barriers in the mini-grid sector, especially in Nigeria and other underserved markets in Africa.
- Scale Impact: The collaboration aims to enhance InfraCredit’s Clean Energy Funding Programme (CEFP) by empowering more developers to structure commercially viable mini-grid and decentralized renewable energy (DRE) projects.
Tools and Resources:
- Credit Enhancement:InfraCredit will offer credit enhancement, due diligence support, and technical assistance to renewable energy developers.
- Distributed Renewable Energy Lending Toolkit (DRELT): InfraCredit will utilize its DRELT and DRE Credit Rating Model to improve the bankability of projects.
Benefits:
- Increased Access to Finance: The partnership will improve access to domestic blended finance and enhance project preparation.
- Private Sector Participation: The collaboration aims to enhance private sector involvement, mobilize local capital, and improve clean energy access in unserved and underserved communities across Africa.
Partnership Impact:
- Socioeconomic Benefits: The partnership aims to deliver tangible socioeconomic benefits in Africa by accelerating the deployment of resilient, decentralized energy solutions.
- Regional Impact: The partnership is seen as a model for enhancing access to clean energy across Africa.
The partnership between InfraCredit and AMDA represents a major advancement in tackling the financing challenges that mini-grid and decentralized renewable energy (DRE) projects face in Africa. By offering access to long-term financing in local currency, this collaboration aims to boost the growth of the clean energy sector and promote sustainable development across the region.
