Africa Renewable Energy Fund (AREF)


BIO is participating with a USD 10 million stake in the Africa Renewable Energy Fund (AREF), a USD 200 million equity fund for renewable energy in sub-Saharan Africa. AREF focusses on power generation using renewable energy resources from remote areas in “least developed countries” and “low income countries” as defined by OECD. These countries typically lack access to long –term financing, paramount to energy and infrastructure investments.

The fund is an initiative of the African Development Bank with an important contribution of the Sustainable Energy Fund for Africa both in funding and technical assistance to assist the fund in financing certain project development costs. BIO is investing alongside other Development Finance Institutions such as the Dutch Development Bank FMO and the British Development Bank CDC.

The developmental impact of the project is high as the project will contribute to the enhancement of investments in power generating infrastructure, which is essential as the needs will continue to increase. The fund will actively contribute to demonstrate the possibility to develop, construct and operate sustainable renewable energy plants in the region and deliver clean energy to the electricity grid. The fund manager will open offices in Kenya and Ghana and a secondment program will contribute to the capacity building of the African Biofuels and Renewable Energy Company (ABREC), owned by African financial institutions and West African states, that aims to develop and invest in renewable energy projects in the West African region. The early stage character of the projects will allow for an important transfer of knowledge and know-how to the local market.

  • Investment amount (€):


    Infrastructure Fund for renewable Energy

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  • Nature of intervention :


  • Development impacts :

    • 1 — Access to energy: Renewable energy is an important solution to the region’s chronic power shortage and the increasing demand for energy.
    • 2 — Demonstration effect: by investing in 8 to 12 projects, the fund will help demonstrate that it is possible to develop, construct and operate renewable energy projects in the region. This will attract more initiatives and improve access to financing for the sector.
    • 3 — Develop skills: The renewable energy market in Africa has a lack of developers’ capacity. The fund will help develop the market participants’ knowledge and experience.