The African Development Bank (AfDB) has received funding for its Covid-19 Off-Grid Recovery Platform less than a year after its debut. Following the AfDB Board’s approval in December 2020 for a $20 million concessional investment from the Sustainable Energy Fund for Africa (Sefa) to establish the platform, additional funding of $20 million was raised from fund managers Lion’s Head Global Partners, Triple Jump, and Social Investment Managers and Advisors.
This $50 million blended finance initiative will be open for business for the next five years. The CRP will give financial support to companies who implement green mini-grids, solar home systems, clean cooking systems, and other renewable energy access alternatives during this period. The objective is to mitigate the effects of the pandemic while also assuring the commercial recovery of the off-grid sector.
The impact of the covid-19 pandemic threatens the progress made in off-grid electricity across Africa over the last decade. As a result, an emergency mechanism such as the CRP is required. Following Sefa, the platform was launched. This unique fund offers green energy with catalytic funding. Sefa’s overall goal, according to its management, the AfDB, is to contribute to universal access to cheap, dependable, sustainable, and modern energy services for all Africans.