Africa50 signs agreement to manage International Solar Alliance’s Africa Solar Facility
Rabat, Morocco – 5 December 2024 – The International Solar Alliance (ISA) and Africa50 today signed a landmark term sheet laying out the key terms on which Africa50, the pan-African infrastructure investor and asset manager, will manage and implement the Africa Solar Facility (ASF).
The term sheet was signed on the sidelines of the Africa Investment Forum Market Days in Rabat, Morocco. This milestone follows exclusive discussions between the two organizations after the announcement at the International Solar Festival in September 2024, where ISA identified Africa50 as the potential Investment Manager for the ASF.
The ASF, targeted at $200 million, is being launched by ISA to provide tailor-made and cost-effective financing solutions to unlock and mobilize investments in distributed renewable energy projects in Africa. This sector has been historically underserved due to small ticket sizes and high perceived risk, despite being critical to accelerating timely access to clean energy for millions. The ASF aims to bridge this gap by mobilizing investments and unlocking the full potential of distributed renewable energy solutions in Africa.
Signing on behalf of Africa50, CEO, Alain Ebobissé said, “We appreciate the trust the International Solar Alliance has shown in Africa50 to manage this important facility. Leveraging our expertise in project development and Project Finance in Africa, we will drive the objectives of this facility, and ultimately support the continent's energy transition goals. This partnership also underscores the objectives of this year’s Africa Investment Forum of leveraging innovative partnerships to scale critical infrastructure for our continent’s growth”.
The ASF is the first regional facility under the umbrella of ISA’s Global Solar Facility (GSF) which is aimed at providing financing to help accelerate deployment of distributed solar projects across regions.
Dr Ajay Mathur, Director General of ISA, “Only 3% of global solar investment in solar energy is reaching Africa. The percentage is even smaller for Decentralized Renewable Energy (DRE). The Africa Solar Facility payment guarantee will provide confidence to investors so they can invest in DRE applications in the continent''.
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About ISA:
ISA is a global treaty-based organization with 120 signatory and member countries. The ISA is an action-oriented, member-driven, collaborative platform for increased deployment of solar energy technologies as a means for bringing energy access, ensuring energy security, and driving energy transition in its member countries. More information about ISA at www.isolaralliance.org
About Africa50:
Africa50 is an infrastructure investor and asset manager that contributes to Africa's growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact. Africa50 currently has 35 shareholders, comprised of 32 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib. For more information, visit: www.africa50.com
Media contact:
Africa50 - Nana Boakye-Yiadom - n.boakyeyiadom@africa50.com
ISA - Borja Lopetegui Gonzalez bgonzalez@isolaralliance.org
Category: Press Release