NDF partners with rAREH to boost clean energy access in Sub-Saharan Africa
EUR 7.5 million in equity and grant financing from NDF will help the responsAbility Renewable Energy Holding Company bring financial resources and expertise to clean energy projects in Africa.
The private equity fund responsAbility Renewable Energy Holding Company (rAREH) will receive EUR 7.0 million (approx. USD 7.8 million) in shareholder equity and EUR 0.5 million (approx. USD 0.6 million) in grant financing from NDF. This was approved last week by NDF’s Board of Directors.
The grant portion is earmarked for rAREH’s Technical Assistance Facility, which aims to build capacity with local promoters and financial institutions and support the development of renewable energy projects that rAREH expects to invest in.
rAREH's mission is to increase the renewable energy supply in Sub-Saharan Africa at a reasonable price and in a responsible way, while generating attractive, long-term, stable cash flow across a diversified portfolio of renewable energy plants. The aim is to develop, own and operate small to medium-sized renewable energy infrastructure projects.
While the natural resources needed for clean energy production are abundant in Africa, the current share of renewable energy in power production is still small. Around 600 million people in Sub-Saharan Africa still have no access to electricity. rAREH will initially focus on East Africa, where energy access was less than 22% in 2015.
