The Nordic Environment Finance Corporation (NEFCO) has just signed a partnership agreement with the European GET.invest programme. The aim is to mobilise investment for access to electricity and clean cooking in sub-Saharan Africa.
As the Beyond the Grid Fund for Africa (BGFA) strengthens its portfolio with new investments in Burkina Faso, Uganda and Zambia, its manager, Nordic Environmental Finance Company (NEFCO), has signed a partnership agreement with GET.invest. As part of this collaboration, which also covers the Modern Cooking Facility for Africa (MCFA) dedicated to clean cooking, the European programme will support NEFCO in mobilising the financing needed to roll out these clean energy access initiatives.
According to NEFCO, both the BGFA and the MCFA require co-financing from the companies under contract and, for these companies, additional financial leverage for the duration of their agreements with NEFCO. “Currently, companies benefiting from the BGFA are aiming for a leverage ratio of more than 3:1, i.e. every euro of public funding (BGFA) mobilises another three euros of private/concessional funding,” says the company headed by Trond Moe.
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The BGFA was set up to facilitate access to electricity in sub-Saharan Africa by providing financial support to companies in the sector. To date, the programme is operational in Burkina Faso, Liberia, Zambia, Mozambique and Uganda. Launched in 2022, the MCFA aims to accelerate access to clean cooking. According to the World Bank, 900 million people in sub-Saharan Africa lack clean, modern energy for cooking.
For the record, the GET.invest programme was set up by the European Union (EU) to help mobilise investment in renewable energy in developing countries. In practical terms, this programme, which is also supported by Germany, the Netherlands, Austria and Sweden, provides financial advisory and business development services to companies and projects to help them access finance. Since 2022, the programme has acted as the European Team’s one-stop shop for green energy investments in developing countries.
Jean Marie Takouleu
