AfDB Approves $5.65 Million to Expand Off-Grid Renewable Energy in Africa’s Fragile States
The African Development Bank Group has approved a $5.65 million grant to pilot a groundbreaking climate finance initiative aimed at accelerating off-grid renewable energy projects across Africa’s most fragile and energy-poor countries.
The funding, provided through the Sustainable Energy Fund for Africa (SEFA), will support the launch of the Peace Renewable Energy Certificate (P-REC) Aggregation Facility — an innovative mechanism designed to unlock new sources of finance for mini-grid developers operating in high-risk markets.
The facility is co-financed by the Nordic Development Fund, which has committed an equivalent $5.65 million, bringing the total funding to $11.3 million. It will be managed by Camco Clean Energy in partnership with Energy Peace Partners, the developer of the P-REC model.
The initiative will operate across 14 frontier markets, including Burundi, the Central African Republic, Chad, the Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Nigeria, Sierra Leone, Somalia, South Sudan, Sudan and Uganda. It targets communities with limited or no access to reliable electricity, many of which are affected by conflict and economic fragility.
Under the facility’s structure, mini-grid developers will receive upfront capital in exchange for renewable energy certificates generated by their projects. These certificates will then be sold to multinational corporations seeking to align their sustainability investments with high-impact climate and development outcomes. The model is designed to channel hard-currency revenue into markets where access to commercial financing remains constrained.
The programme is expected to deliver first-time electricity access to approximately 856,000 people, around half of them women, through the creation of about 240,000 new connections and 71 megawatts of renewable energy capacity.
The initiative aligns with Mission 300, a joint programme by the African Development Bank and the World Bank aimed at connecting 300 million Africans to electricity by 2030.
João Duarte Cunha, Manager of the Renewable Energy Funds Division at SEFA, said limited access to capital remains a major barrier to rural electrification, particularly in fragile and conflict-affected countries.
“This is a first-of-its-kind facility testing a new climate finance product capable of unlocking commercial funding for private sector-led mini-grids,” he said.
Satu Santala, Managing Director of the Nordic Development Fund, emphasised the urgency of expanding access to clean energy in fragile regions, noting that the initiative also strengthens international collaboration on climate action.
Camco Chief Executive Officer Geoff Sinclair said the facility will provide low-cost, non-dilutive capital to energy access projects, helping to expand clean energy access while boosting jobs and livelihoods.
Meanwhile, Energy Peace Partners Managing Director Sherwin Das highlighted the broader impact of the initiative, noting that renewable energy projects in fragile regions can improve health, education, safety and economic opportunities.
