AfDB Approves $20m To Support Renewable Energy In Sub-Saharan Africa
As part of the efforts to alleviate the financing constraints in renewable energy sector in Africa, the Board of Directors of the African Development Bank has approved a $20 million investment in the Metier Sustainable Capital International Fund II, which channels funds to renewable energy and resource-efficient infrastructure projects across Sub-Saharan Africa.
The Bank in a statement noted that the funding would contribute to the production of an additional 178.5 megawatts of renewable power for commercial and residential use.
It also stated that the investment would create opportunities for industrial waste water treatment and waste-to-energy generation. The Fund will meet the Bank’s strict environment and safeguards standards to ensure potential risks are adequately mitigated.
Highlighting the relevance of the project, Wale Shonibare, the Bank’s Acting Vice President for Power, Energy, Climate Change & Green Growth said, “Metier has extensive experience in developing and financing renewable energy projects with strong technical partners and co-developers in Southern Africa. We are pleased to join other investors in supporting their expansion into new African markets to help unlock the vast renewable potential of the continent.”
The Managing Principal at Metier Sustainable Capital, Marc Immerman said, “We embrace the strong synergies between the mandate of the AfDB and Metier Sustainable Capital Fund II. We look forward to jointly delivering a portfolio of clean energy and resource-efficient investments.”
Metier is a well-established fund manager with a track record of deploying more than $550 million in African countries, including solar, wind and hydro power projects in Southern and East Africa.
The company has been a key player in South African solar power, a maturing technology that offers significant benefits in terms of storage and dispatchability to the grid, unlike traditional photovoltaic options.