International Solar Alliance enters exclusive discussions with Africa50 to manage $200M Africa Solar Facility

2024-11-22 10:04:50 Industry

1021

New Delhi, September 5, 2024 – The International Solar Alliance (ISA) announced today that it has entered into exclusive discussions with Africa50, to have it serve as a potential investment manager for ISA’s proposed Africa Solar Facility (ASF).

This decision follows a public expression of interest (EOI) process initiated by ISA to identify entities capable of serving as the ASF’s investment manager. The announcement was made during the first-ever International Solar Festival 2024, a landmark event organized by the ISA, an intergovernmental organization that works with governments to promote solar power as a key climate solution and a sustainable way to transition to a carbon-neutral future.

Speaking on the occasion, Dr. Ajay Mathur, Director General, International Solar Alliance, said, “I am delighted to share that we are partnering with Africa50 to implement the first regional fund in Africa under the umbrella of ISA's flagship private sector program, the Global Solar Facility. I believe Africa50 will be an ideal partner for ISA’s Africa Solar Facility, as it brings together the best of both the public and private sectors – combining public sector reach and resources with the private sector’s agility and investment capabilities. We hope to build the facility together with Africa50 and help provide clean electricity to 600 million people in Africa.”

The ASF is a $200 million initiative designed to unlock investment in distributed solar projects across Africa. By offering tailor-made and cost-effective financing solutions, the facility aims to bridge the gap in a currently underserved market, where smaller project sizes and high perceived risks have hindered investment despite the critical need for clean energy. The ASF will play a vital role in expanding energy access, accelerating solar deployment, and driving sustainable development across the continent.

Africa50 is a leading pan-African infrastructure investor and asset manager with a portfolio exceeding $8 billion that has mobilized over $4 billion in external funding for African infrastructure. Supported by 32 African countries, the African Development Bank, and two African central banks, Africa50’s unique project development capabilities, expertise strong track record of project development and implementation, and convening power make it a distinguished partner for this effort.

The ISA and Africa50 see strong synergies in their mission to accelerate clean energy deployment in Africa. Subject to the successful conclusion of discussions and formalization of necessary arrangements, Africa50 is expected to be appointed as ASF’s investment manager. The ASF represents the first regional initiative under the broader Global Solar Facility (GSF), ISA’s flagship effort to provide innovative financial solutions for distributed solar projects worldwide.

The GSF is a significant milestone in ISA’s mission of improving energy access and security, for its over 119 member and signatory countries that have committed to transitioning toward a carbon-neutral future through solar power.

About the International Solar Alliance

The International Solar Alliance (ISA) is a global intergovernmental organization dedicated to advancing solar power adoption for a carbon-neutral future. ISA’s mission is to unlock investments in solar while reducing the cost of technology and its financing. Serving as a platform for international cooperation, ISA assists member countries in solar deployment across various sectors through policy enactment, standardization, and investment mobilization. Through innovative business models, policy advisory, and financial risk reduction, ISA promotes affordable solar solutions and facilitates access to solar training, data and insights for solar engineers and energy policymakers. ISA is one of the first multilateral intergovernmental organization to be headquartered in India and is collaborating with multilateral organizations, public and private sectors, and civil society to deploy cost-effective and transformational solar solutions, particularly in Least Developed Countries (LDCs) and Small Island Developing States (SIDS).

About Africa50:

Africa50 is an infrastructure investor and asset manager that contributes to Africa's growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact. Africa50 currently has 35 shareholders, comprised of 32 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib.