The African Renewable Energy Fund (AREF), a dedicated renewable energy fund focused on sub-Saharan Africa, announced during the African Development Bank’s “Energy Week” that it successfully reached its final close at its hard cap, with US $200 million of committed capital to support small- to medium-scale projects.
The fund has secured investments at the final close from the European Investment Bank (EIB) and the Global Energy Efficiency and Renewable Energy Fund (GEEREF), among other investors.
The African Development Bank (AfDB) and its Sustainable Energy Fund for Africa (SEFA) are the fund’s lead sponsors, with equity investment of US $25 million and US $25.5 million, respectively, alongside US $4.5 million from the Global Environment Facility (GEF). SEFA has additionally committed a US $10-million Project Support Facility (PSF) to be deployed at an early stage to structure bankable deals. The total AfDB-mobilized package of US $65 million has provided a solid foundation for attracting capital from commercial and institutional investors to the renewable energy segment in Africa.