Norfund's New Investment Lights Up Africa
Deal News | Dec 11, 2024 | Norfund
Norfund, an investment company based in Norway, has announced a significant investment in the REPP2 fund aimed at expanding access to renewable energy in sub-Saharan Africa. With a total of NOK 1.2 billion (USD 107 million), REPP2 is designed to develop 330 MW of new capacity and provide clean energy to 7.7 million people. This initiative is crucial in addressing both poverty and climate change, according to Anne Beathe Tvinnereim, the Minister of International Development. Norfund is investing NOK 166 million (USD 15 million) in collaboration with the Green Climate Fund, FMO, and Norad. This blended finance model will fund small-scale, grid-connected, and off-grid renewable projects, building on the achievements of the earlier REPP1 fund. A notable impact is observed as small-scale solar home systems using mobile payment plans begin to make electricity more accessible across Africa. Overall, these efforts contribute significantly to reducing the number of people without electricity, a challenge that Africa faces acutely as the continent now accounts for the majority of the global population lacking electricity.
Sectors
- Renewable Energy
- Finance
- Development
Geography
- Sub-Saharan Africa – The target region for Norfund's investment is sub-Saharan Africa, where the renewable energy projects will be implemented.
- Norway – Norfund, a major participant in the fund, is based in Norway. The article reflects Norway's role in international development through this investment.
Industry
- Renewable Energy – The article centers around investments in renewable energy projects, highlighting the effort to improve access to clean energy in sub-Saharan Africa.
- Finance – Norfund's investment in the REPP2 fund involves innovative financial structures like blended finance, showcasing the sector's role in renewable energy funding.
- Development – The initiative aims at socio-economic development by combating energy poverty through the lens of sustainable infrastructure and economic growth.
Financials
- NOK 1.2 billion (USD 107 million) – Total amount of the REPP2 fund aiming to invest in renewable energy projects.
- NOK 166 million (USD 15 million) – Norfund's specific investment in the REPP2 fund.
- USD 120 million – Amount of the earlier REPP1 fund which the new fund builds upon.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Norfund | Investor | Company | A Norwegian investment company investing in the REPP2 fund to provide renewable energy to sub-Saharan Africa. |
| REPP2 | Fund | Company | A fund focused on developing renewable energy projects in sub-Saharan Africa. |
| Green Climate Fund | Co-Investor | Company | An organization contributing to the investment in the REPP2 fund. |
| FMO | Co-Investor | Company | The Dutch development finance institution participating in the REPP2 fund. |
| Norad | Technical Assistance Funder | Company | Providing funding for technical assistance to the REPP2 fund. |
| Anne Beathe Tvinnereim | Commentator | Government | Minister of International Development commenting on the importance of the investment. |
| Tellef Thorleifsson | Speaker | Person | CEO of Norfund, providing insights into the impact and scope of the REPP2 fund. |
| Sun King | Recipient of Investment | Company | A company providing solar energy solutions in sub-Saharan Africa. |