Key facts
- Implementing Partner:
Impact Fund Denmark
- Guarantee volume:
up to €50 million
- Global Gateway areas of partnership:
Climate and Energy
- Sectors:
Renewable Energy
- Geographical focus:
Sub-Saharan Africa
- Type of support provided:
Financing, Technical assistance
- Types of investments:
Liquidity guarantee
- Investment period:
Open for investments until April 2028
- Technical assistance:
€0.5 million
Description
Africa GreenCo (AGG) acts as a trader of renewable energy generated in the Southern African Power Pool. Under its business model, it purchases electricity from power producers, under the commercial terms defined in power purchase agreements (PPA) with each individual producer. A key feature of these PPAs is a requirement for AGG to maintain collateral to reassure their counterparty that AGG will be able to honour its payment obligations towards the power producer.
Through the EFSD+ guarantee, Impact Fund Denmark provides AGG with additional liquidity buffer capacity to be used as collateral towards IPPs, thus enabling AGG to scale up its electricity trading activity.
As a result, national electricity markets’ interconnection will be promoted, making electricity more affordable and available for consumers and companies in the region.
How can businesses and investors get involved?
If you are an investor with an interest in this guarantee program, we recommend getting in touch directly with Impact Fund Denmark.
Contact: contact
impactfund [dot] dk (contact[at]impactfund[dot]dk)
About Impact Fund Denmark
Impact Fund Denmark is a Development Financial Institution owned by the Government of Denmark. It is a self-governing, state-owned fund, whose objective is to promote economic and social development in developing countries. The Fund provides risk capital and advice to companies wanting to do business in parts of Europe, Asia, Latin America, and Africa.