Facility for Energy Inclusion reaches final close

The Facility for Energy Inclusion (FEI) has received a further $24 million subscription by KfW. With this additional allocation, KfW on behalf of the German Ministry for Economic Cooperation and Development (BMZ) has now committed a total of $52 million to FEI, bringing FEI’s total equity base to about $145 million and the total potential fund size to just under $400 million. FEI has now reached final close of its equity.

The commitment by KfW is part of BMZ’s “Green people’s energy for Africa” initiative, which will help meet the rising demand for energy across the African continent while fostering the productive use of renewable energy and supporting Africa on its climate-friendly development path.

FEI is designed to support small-scale independent power producers (IPPs) delivering power to the grid, mini-grids, C&I and captive power projects. Priority will be given to projects in sub-Saharan countries with lower electricity access rates. Eligible investments are projects using renewable energy technology with a capacity up to 25MW. Since its first close in December 2019, FEI is currently executing mandated transactions in nine countries with a total commitment exceeding $100 million.

The African Development Bank is the anchor sponsor of FEI, with a financing contribution of about $90 million, including $20 million from the Clean Technology Fund as implementing agency. Additional equity commitments from investors include €25 million from the European Commission, $23 million from Norfund, with a $20 million lending facility provided by OeEB.

Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.