DFC approves new African investments
The U.S. International Development Finance Corporation (DFC) board of directors this quarter approved 16 new projects totaling $1.6 billion of investment support across equity and investment funds, debt financing, and political risk insurance products.
The approved transactions will focus on energy access and security; food security; climate mitigation, adaptation and resilience; and gender equity and financial inclusion.
“The DFC transactions approved this quarter will support priority sectors for development and economic growth, including food security, energy security, climate solutions, and small business growth and recovery,” said DFC CEO Scott Nathan. “Russia’s outrageous war in Ukraine continues to send shockwaves through the developing world, limiting access to energy and exacerbating food insecurity. By mobilising private sector investment, DFC is playing a critically important role in helping communities around the world overcome these compounding crises.”
DFC’s board of directors approved the following Africa-related projects this quarter:
– Increasing access to clean drinking water across emerging markets: A $10 million equity investment into the Water Access Acceleration Fund will provide capital to innovative businesses promoting affordable drinking water access mostly in Africa and South and Southeast Asia.
– Expanding support for reliable power access in Sierra Leone: $50 million in political risk insurance for CEC Africa will support existing DFC project CECA Power Generation Limited in providing reliable power access communities in Sierra Leone, a low-income country.
– Financing critical renewable energy development across Africa: An up to $40 million equity investment in Africa Renewable Energy Fund II will dedicate capital towards mid-sized renewable energy projects across sub-Saharan Africa, increasing access to clean electricity.
– Advancing renewable energy solutions in Africa and Asia: A $100 million debt investment in the Gigaton Empowerment Fund will finance distributed clean energy transition companies and projects, primarily SMEs in Africa and Asia, to build climate-friendly solutions in response to increasing demand for energy in developing countries.