FMO commits to AREF II

The Africa Renewable Energy Fund II (AREF II), a private equity fund investing in clean energy generating assets across sub-Saharan Africa (excluding South Africa), has raised €10 million from the Dutch entrepreneurial development bank, FMO. The fund is managed by Berkeley Energy. AREF II is the follow-on fund of the Africa Renewable Energy Fund (AREF), in which FMO invested in 2014.

FMO’s investment in the AREF II will come from two government funds, Access to Energy Fund (AEF) and Building Prospects Fund (BPF). The funding objective is to deploy capital towards investments that deliver social and environmental benefits as well as financial returns. The AREF II investment mandate is focused on renewable energy generation in Africa, and as such the fund will play an important role in the support to the transition to clean energy as well as increasing access to energy in underserved and challenging markets.

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