IFC - International Finance Corporation

Published purpose

This initiative establishes a loan fund managed through the World Bank Group’s International Finance Corporation (IFC) in support of the objectives of the African Renewable Energy Initiative (AREI). It will help increase Africa’s energy access and curb the effects of climate change through private sector investments in eligible renewable energy projects. This was announced at the Climate Change Conference of Parties (COP21) in Paris, in December 2015, as part of Canada’s pledge of $2.65 billion (2016-2021) to support the efforts of developing countries towards a low-carbon future. IFC lends Canadian funds on concessional terms alongside its commercial resources to eligible renewable energy projects. These funds leverage other public and private sectors investments, thus “unlocking” private capital that would not normally be available for these projects due to perceived risk. Borrowers would be private sector companies, seeking funding to support the construction and operation of renewable energy infrastructure projects, such as solar, hydro and biomass. AREI is an African-led continental framework that aims to accelerate access to sufficient, clean, appropriate, and affordable energy using renewable energy systems. It aims to mobilize Africa’s potential to generate at least 300 GW additional renewable energy capacity by 2030.