Africa Renewable Energy Fund

Equity : October 2014

AREF is an equity fund dedicated to renewable energy projects in sub-Saharan Africa.

Amount

€ 8,896,000.00

Type of investment

Equity

Development impacts

  • Local economic growth
  • Private sector consolidation/innovation
  • Access to basic services & goods
  • Fight against climate change and preservation of natural resources

Beneficiary locations

Sub-Saharan Africa: Ghana, Kenya, Senegal, Uganda, Zambia

Investment field

Investment Companies & Funds

Activity

Infrastructure fund

Organisation

Africa Renewable Energy Fund

The Africa Renewable Energy Fund (AREF) is an initiative of the African Development Bank (AfDB) with an important contribution of the Sustainable Energy Fund for Africa (SEFA).

AREF invests into small hydro, wind, geothermal, solar, and biomass projects across Sub-Saharan Africa, excluding South Africa. The fund will essentially acquire controlling equity stakes in the projects so that the fund manager is able to determine the strategy of the companies.


Development impacts

  • Local economic growth

    Access to long-term financing for infrastructure

  • Private sector consolidation/innovation

    The renewable energy market in Africa has a lack of developers’ capacity. The fund will help develop the market participants’ knowledge and experience.

  • Access to basic services & goods

    Africa suffers from severe energy shortages. The fund's investments will increase capacity.

  • Fight against climate change and preservation of natural resources

    Cleaner energy for SSA: Based on the fund model assumptions, these projects would allow for a yearly reduction of CO2 emissions of 200,000 tons a year compared to brown energy alternatives.

Made possible through this investment

Thanks to the direct funding from BIO, the following second-line investments have been made possible.

Achwa1

Uganda

Achwa 1 is a 42MW run-of-the-river hydropower project located in Northern Uganda, in the districts of Pader, Gulu, and Kitgum, along the Achwa River. The project is under construction and is expected to be completed in Q1 2021.

Achwa2

Uganda

Achwa 2 is a 41MW run-of-the-river hydropower project located in Northern Uganda, in the districts of Pader, Gulu, and Kitgum, along the Achwa River. The project became operational after achieving deemed commercial operations in October 2019.

APSD

Ghana

Africa Plantation for Sustainable Development (APSD) is a 60MW biomass project located near the Atebubu town, Brong Ahafo Province in Central Ghana.

Azimuth

Ghana

Azimuth develops, constructs and operates 100kW to 2.5MW solar installations with power sold to commercial and industrial customers in Sub-Saharan Africa.

Bugoye

Uganda

Bugoye is a 13MW run-of-the-river hydroelectric power plant located in Bugoye sub-county, Kasese district, which is at the foot of the Rwenzori Mountains in Western Uganda. The project is operational with an annual average generation of 78GWh.

Chipapaso

Zambia

Chipapaso is a 9.9MW run of river hydro project located on the Munensi River, a tributary of the Munyamadzi River in Mpika District in Muchinga Province in Zambia. The project is under development and expected to be submitted under the GET FIT programme.

Corbetti

Ethiopia

Corbetti is a 150MW geothermal project located in the Corbetti Caldera, approximately 250km south-west of Addis Ababa in between the towns of Shashamene and Hawassa in the Oromia Region of Ethiopia. Corbetti signed an amended PPA and Implementation Agreement with the state-owned power utility EEP in March 2020 and drilling of the first exploration wells will commence following the PPA Effective Date.

Dibombe

Cameroon

Dibombe is a run of river project with a proposed installed capacity of 62.6MW and located along the Dibombe River in the Littoral region in the Francophone part of Cameroon. The project is under development with the feasibility study concluded and under validation by the Ministry of Water and Energy (MINEE).

Kikagati

Tanzania, Uganda

Kikagati is a 16MW run-of-river hydropower project located along the Kagera River in South-Western Uganda on the Tanzania-Uganda border. The project is under construction and estimated for completion in Q1 2021. This project is the result of ground-breaking co-operation between the Tanzanian and Ugandan government with power being provided to both countries.

Mahitsy

Madagascar

Mahitsy is a 28MW run-of-river hydropower project located on the Ikopa River, 35km north-west of the capital, Antananarivo. The project is under construction with targeted completion in Q1 2021 and is estimated to have an annual generation output of 124GWh.

Sahanivotry

Madagascar

Sahanivotry is a 16.5MW run-of-river hydropower project located on the Ampamehana River, 30km south of the third largest town, Antsirabe, in central Madagascar. The project has been operational since achieving COD in October 2008 and has an annual average output of 75GWh.

Vuka

The Vuka hydro projects are located along the Cuango River in the province of Lunda Norte in Angola. Three sites have been initially identified and are under development. The project sites are estimated to possess a potential capacity in excess of 200MW.

View more of our investments in this region

ACEP Group

Financial Institutions

ACEP Group

  30,900.00

  Burkina Faso, Cameroon, Madagascar, Niger, Senegal

  30/07/2018

  Subsidy

African Rivers Fund III

Investment Companies & Funds

African Rivers Fund III

  1,500,000.00

  Democratic Republic of Congo, Uganda

  01/09/2020

  Equity

Adenia Capital III

Investment Companies & Funds

Adenia Capital III

  100,000.00

  Côte d'Ivoire, Ghana, Madagascar

  05/05/2020

  Subsidy

African Rivers Fund III

Investment Companies & Funds

African Rivers Fund III

  6,113,520.00

  Democratic Republic of Congo, Uganda

  01/09/2020

  Equity

Fairtrade Access Fund

Investment Companies & Funds

Fairtrade Access Fund

  350,000.00

  Bolivia, Brazil, Colombia, Ecuador, Guatemala, Honduras, Nicaragua, Paraguay, Peru, Burkina Faso, Côte d'Ivoire, Ghana, Kenya, Tanzania, Uganda

  07/04/2020

  Subsidy

Alios Finance S.A.

Financial Institutions

Alios Finance S.A.

  2,877,422.00

  Kenya, Tanzania, Zambia

  15/12/2015

  Debt

EFC Uganda

Financial Institutions

EFC Uganda

  16,144.00

  Uganda

  18/12/2019

  Subsidy

Zoscales Fund I

Investment Companies & Funds

Zoscales Fund I

  21,757.30

  Ethiopia, Kenya, Rwanda, Tanzania, Uganda

  12/11/2019

  Subsidy

Frontier Energy II

Investment Companies & Funds

Frontier Energy II

  8,151,000.00

  Kenya, Rwanda, Tanzania, Uganda

  21/03/2018

  Equity

AfricInvest Financial Inclusion Vehicle

Investment Companies & Funds

AfricInvest Financial Inclusion Vehicle

  10,000,000.00

  Morocco, Côte d'Ivoire, Democratic Republic of Congo, Ghana, Kenya, Nigeria, Rwanda, Tanzania, Zambia

  14/12/2017

  Equity

Fairtrade Access Fund

Investment Companies & Funds

Fairtrade Access Fund

  3,000,000.00

  Bolivia, Brazil, Colombia, Ecuador, Guatemala, Honduras, Nicaragua, Paraguay, Peru, Burkina Faso, Côte d'Ivoire, Ghana, Kenya, Tanzania, Uganda

  24/10/2019

  Equity

Fidelity Bank Ltd.

Financial Institutions

Fidelity Bank Ltd.

  25,075.00

  Ghana

  03/04/2019

  Subsidy

Fidelity Bank Ltd.

Financial Institutions

Fidelity Bank Ltd.

  14,433,000.00

  Ghana

  20/12/2016

  Debt

ACEP Group

Financial Institutions

ACEP Group

  4,100,000.00

  Burkina Faso, Cameroon, Madagascar, Niger, Senegal

  14/10/2019

  Equity

Verod Capital Growth Fund III

Investment Companies & Funds

Verod Capital Growth Fund III

  8,733,600.00

  Ghana, Nigeria

  25/07/2019

  Equity

ARPE Ltd.

Infrastructure

ARPE Ltd.

  8,236,550.00

  Uganda

  07/12/2016

  Debt

EFC Uganda

Financial Institutions

EFC Uganda

  285,933.00

  Uganda

  28/09/2016

  Equity

EFC Uganda

Financial Institutions

EFC Uganda

  1,000,000.00

  Uganda

  23/03/2018

  Equity

African Rivers Fund

Investment Companies & Funds

African Rivers Fund

  4,118,275.00

  Democratic Republic of Congo, Uganda

  02/02/2016

  Equity

Rwimi EP Company

Infrastructure

Rwimi EP Company

  9,426,443.00

  Uganda

  29/07/2015

  Debt

Beyond the Grid Solar Fund

Investment Companies & Funds

Beyond the Grid Solar Fund

  4,175,007.50

  Burkina Faso, Côte d'Ivoire, Ghana, Kenya, Nigeria, Rwanda, Tanzania, Uganda

  26/10/2017

  Debt

Senergy II

Infrastructure

Senergy II

  9,100,000.00

  Senegal

  13/11/2017

  Debt

Ten Merina Ndakhar

Infrastructure

Ten Merina Ndakhar

  16,000,000.00

  Senegal

  06/12/2016

  Debt

Agri-Vie Fund II

Investment Companies & Funds

Agri-Vie Fund II

  6,552,700.00

  Kenya, South Africa, Tanzania, Uganda, Zambia

  20/01/2017

  Equity

Adenia Capital IV LP

Investment Companies & Funds

Adenia Capital IV LP

  9,000,000.00

  Côte d'Ivoire, Ghana, Madagascar

  01/11/2016

  Equity

ACEP Group

Financial Institutions

ACEP group

  67,512.00

  Burkina Faso, Cameroon, Madagascar, Niger, Senegal

  23/07/2019

  Subsidy

Laiterie du Berger

Enterprises

Laiterie du Berger

  1,600,000.00

  Senegal

  18/07/2019

  Debt

TLcom TIDE Africa

Investment Companies & Funds

TIDE Africa

  4,367,820.00

  Kenya, Nigeria

  28/06/2019

  Equity

Ethos Mezzanine Partners 3

Investment Companies & Funds

Ethos Mezzanine Partners 3

  8,868,980.00

  Burundi, Ethiopia, Kenya, Malawi, Mozambique, Rwanda, South Africa, Tanzania, Uganda, Zambia

  13/06/2019

  Equity

Cofina Sénégal SA

Financial Institutions

Cofina Sénégal SA

  4,320.00

  Senegal

  28/01/2019

  Subsidy

Enko Education

Enterprises

Enko Education

  2,000,000.00

  Burkina Faso, Cameroon, Côte d'Ivoire, Mali, Mozambique, Senegal, South Africa

  20/09/2018

  Debt

Adenia Capital III

Investment Companies & Funds

Adenia Capital III

  5,000,000.00

  Côte d'Ivoire, Ghana, Madagascar

  28/02/2012

  Equity

Adenia Capital III

Investment Companies & Funds

Adenia Capital III

  100,000.00

  Côte d'Ivoire, Ghana, Madagascar

  19/05/2016

  Subsidy

Adenia Capital III

Investment Companies & Funds

Adenia Capital III

  150,000.00

  Côte d'Ivoire, Ghana, Madagascar

  28/09/2012

  Subsidy

Niche Cocoa Industry Ltd

Enterprises

Niche Cocoa

  449,000.00

  Ghana

  29/12/2010

  Debt

Niche Cocoa Industry Ltd

Enterprises

Niche Cocoa

  4,300,000.00

  Ghana

  02/06/2015

  Debt

Niche Cocoa Industry Ltd

Enterprises

Niche Cocoa

  41,603.00

  Ghana

  16/03/2016

  Subsidy

Cofina Sénégal SA

Financial Institutions

Cofina Senegal

  3,000,000.00

  Senegal

  15/03/2019

  Debt

Cofina Sénégal SA

Financial Institutions

Cofina Sénégal

  3,000,000.00

  Senegal

  15/03/2019

  Debt

Zoscales Fund I

Investment Companies & Funds

Zoscales Fund I

  4,169,100.00

  Ethiopia, Kenya, Rwanda, Tanzania, Uganda

  18/04/2019

  Equity

7 Hills

Enterprises

7 hills

  77,000.00

  Uganda

  05/10/2006

  Subsidy

Laiterie du Berger

Enterprises

Laiterie du Berger

  1,200,000.00

  Senegal

  20/07/2017

  Debt