A creditworthy intermediary to attract private investment into renewable energy generation

Africa GreenCo is a transformative renewable energy buyer and seller that aims to attract private investment into energy generation in Sub-Saharan Africa. It functions as a creditworthy intermediary. On one side, it purchases power from renewable Independent Power Providers (IPPs). On the other side, it sells electricity to a portfolio of utilities, private sector offtakes, and competitive markets within the Southern Africa Power Pool (SAPP). In this way, Africa GreenCo helps mobilise private finance, by mitigating the credit risks associated with energy off-takers and reducing the cost of capital. Operations began in 2022 after a second close of $15.5 million of equity funding from InfraCo Africa, the Investment Fund for Developing Countries (IFU), and the EU-funded Electrification Financing Initiative (EDFI ElectriFI). Other funding received includes grants to support initial feasibility studies and the development of a proof-of-concept, as well as concessional debt from DFIs to support its current capital requirements. As Africa GreenCo continues to build a track record, it aims to attract commercial financing from private investors (both within GreenCo and towards the IPPs supported by GreenCo).