The International Renewable Energy Agency (IRENA) signed a cooperation agreement on Tuesday with Africa50, an investor and asset manager in infrastructure projects across the African continent, to accelerate the deployment of renewable energy in Africa.
Under this agreement, Africa50 has pledged up to $100 million to co-finance energy transition projects and infrastructure based on renewable energy sources in Africa through the Energy Transition Accelerator Financing (ETAF) platform.
This commitment aims to enhance sustainable development and climate action efforts across the continent.
The agreement was signed on the sidelines of the OPEC Fund Development Forum in Vienna by Francesco La Camera, Director-General of IRENA, and Alain Ebobisse, CEO of Africa50.
Francesco La Camera stated that for the first time in a decade, data has shown a significant increase in the number of people without electricity, the majority of whom live in sub-Saharan Africa.
This situation necessitates urgent action to address the growing problem. He emphasized that renewable energy sources are the most effective and climate-friendly solution, highlighting that the partnership with Africa50 is crucial in amplifying the impact of the ETAF platform across Africa.
Alain Ebobisse, CEO of Africa50, stressed that Africa should focus on reducing emissions and accelerating economic development. Investing in renewable energy infrastructure is a critical transitional step towards achieving net-zero emissions.
He noted that the ETAF platform would be a significant launchpad for expanding and accelerating investments in renewable energy projects, ultimately helping to mitigate the catastrophic effects of climate change on the continent’s populations.
The ETAF platform, established in 2021 with support from the United Arab Emirates, aims to scale up financing for renewable energy projects that support nationally determined contributions (NDCs) in developing countries. It also seeks to benefit communities by facilitating access to energy sources, ensuring energy security, and driving economic growth and diversification.
With Africa50 joining, ETAF now has 14 partners who have collectively committed a total of $4.15 billion, underscoring its growing role as an inclusive and effective financing tool for the energy transition.
This partnership leverages IRENA’s global membership to attract project proposals through the ETAF platform and Africa50’s expertise in project development and equity financing.
Additionally, IRENA will collaborate with the Kenyan government to host the Accelerated Renewable Energy Deployment in Africa Partnership Investment Forum, scheduled for September 1, 2024.
The forum aims to facilitate connections between project developers and potential financiers through a structured matchmaking program, and to explore projects from the Accelerated Renewable Energy Deployment in Africa Partnership and other international organizations to support the initiative’s developmental goals.
