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Supporting companies in the trade and industry sector in Africa’s fragile States

Project

Signature date
Location
Nigeria, Multi-country Africa
Financing tool
Equity investment
Financing amount (Euro)
10000000
Financing details
EUR 10m Equity Investment
Customer
AFRIGREEN Debt Impact Fund SLP
Type of customer
Investment fund
Country of headquarters
France
Project number
PZZ1614
Environmental and social ranking
IF-B
Climate co-benefits
Project with climate co-benefits
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

Proparco has contributed to the AFRIGREEN investment fund with a EUR 10m equity investment. This fund will finance projects for decentralized solar assets for commercial and industrial clients in Africa’s fragile States.

Client presentation

The AFRIGREEN fund came about through the partnership between the French management company RGREEN and the French advisory firm for renewable energies Echosys, which was set up by two former executives from Akuo Energy, Olivier Leruste and Alexandre Gilles. The AFRIGREEN fund has two objectives: help African commercial and industrial (C&I) companies reduce both their energy bill and their dependence on diesel. The fund aims to increase renewable energy penetration in Africa and thereby facilitate the green transition.

Project description

Proparco is supporting the AFRIGREEN fund with a EUR 10m equity investment. AFRIGREEN will provide senior debt to finance projects for decentralized solar assets for commercial and industrial (C&I) clients. AFRIGREEN will be able to offer facilities in tranches allowing borrowers to finance portfolios as the underlying projects progress. There are currently virtually no financing solutions in senior debt for this type of project. Developers mainly finance them with their own funds, which holds back growth in the trade and industry sector.

Project impact

The main impacts are as follows:

  •  Around 30 Commercial & Industrial projects in different sectors supported in West and Central Africa in various fragile countries 
  • New or improved access to stable and low-carbon energy for the end-user clients of projects in geographical areas suffering from deficient networks
  • 182,627 tons of CO2 equivalent avoided per year

The project will contribute to SDG 7 “Affordable and clean energy”, SDG 8 “Decent work and economic growth” and SDG 13 “Climate action”.