PRESS RELEASE
London, 9 December: Climate and impact fund manager Camco has reached first close on USD 107 million for its new REPP 2 debt fund to invest in the African grid of the future, with a further USD 78 million committed subject to conditions.
With backing from the Green Climate Fund (GCF), Norfund, FMO, BIO, Ceniarth and the Renewable Energy Performance Platform (REPP), which is funded by UK International Development, the achievement marks a significant milestone in Camco's commitment to leading the transition to a net zero future in emerging markets.
REPP 2 is a pioneering fund aimed at delivering significant climate, economic and gender impacts while ensuring sustainable returns for investors in Africa’s fast-growing market for renewables. The fund is structured as a blended finance vehicle to leverage public and private investors to invest in Sub-Saharan Africa’s distributed and small-scale renewable energy market. In doing so, REPP 2 is supporting the decarbonisation of the African energy system while contributing directly towards closing the USD 22 billion annual investment gap needed to meet SDG7 and deliver reliable electricity access to all.
Ben Hugues, REPP 2 Director at Camco, said: “Africa’s energy transition is happening. It is critical to invest in the businesses building the African energy grid of the future, which is decentralised, renewable and reliable.
“This requires significant and urgent scaling up of finance to enable innovative companies to scale and generate both attractive returns and significant climate impact. It is so exciting to have so many world-leading investors on board who share our vision for Africa’s future and recognise the critical role of blended finance in the sector.”
Over its lifetime, REPP 2 aims to support the addition of 330MW of new capacity and the mitigation of over 12.7 million tCO2e in emissions.¹ This will provide clean energy access to more than 7.7 million people and enhance the resilience of approximately one million beneficiaries.
REPP 2 will be supported with a technical assistance facility funded by Norad to accelerate market growth in the sector by addressing both the financial and non-financial barriers that are currently impairing project development and slowing down investments.
Additional quotes from investors:
Diane Isenberg, Founder and Managing Director of Ceniarth, said: “As a private investor in the energy access sector for the past decade, Ceniarth has seen firsthand the opportunities and challenges in bringing reliable electrification to underserved communities in Africa. We are proud to be supporting Camco as the firm brings the right mix of hard-earned experience and expertise to finance the deployment of a range of energy solutions, from solar PV mini-grids to grid-connected projects, at scale.”
Tellef Thorleifsson, CEO of Norfund, said: “Norfund firmly believes that decentralised and small-scale renewable energy will play a central role in delivering the energy access needed for African countries to grow sustainably. We believe REPP 2 can be instrumental in enabling and unlocking financing for such projects under development that would otherwise often struggle to attract capital.”
Marnix Monsfort, Director of Energy at FMO, said: “There is a significant shortage of debt and equity financing for small independent power producers and for companies that provide last-mile energy delivery solutions in Africa, especially in Least Developed Countries. Camco’s strong commitment to high ESG standards and its dedication to delivering reliable electricity access in underserved areas make the REPP 2 blended finance fund an important player in closing this financing gap. For FMO, the fund aligns closely with our mission to reduce global inequalities and support initiatives that promote energy access.”
Kavita Sinha, Private Sector Facility Director at the GCF, said: “The Green Climate Fund is proud to be supporting REPP 2. By catalysing innovative business models and capital for clean energy solutions in a region most vulnerable to climate change, we are not only advancing the region's sustainable development, but also contributing to global efforts to combat climate change. This commitment represents a significant step forward in building a low-carbon, resilient future for the communities of Sub-Saharan Africa while unlocking new opportunities for economic growth and energy access.”
Andrew Lucas, REPP Board member, said: “REPP is proud to be an anchor investor in REPP 2, which builds on what we’ve learned from REPP. The blended finance structure of REPP 2 has attracted a range of investors, from DFIs to private, underlining the critical role blended finance has in building the African grid of the future.”
¹ Mitigation targets refer to total mitigation over the technology lifetime and are calculated based on UNFCCC-approved Clean Development Mechanism (CDM) methodologies.
<ends>
Notes to editors
For all media enquiries and interview requests, please contact Hugh Bowring at media@camco.energy / +44 7768 275731.
About REPP 2
REPP 2 is a private debt fund designed and managed by Camco that focuses on the energy transition in Sub-Saharan Africa. It is structured as a blended finance facility and aims to deliver significant climate, economic and gender impacts through the financing of small and medium-scale renewable energy assets. camco.fm/repp-2
About Camco
Camco is a specialist climate and impact fund manager, leading the transition to a prosperous net zero future in emerging markets. It is an Accredited Entity of the Green Climate Fund and is authorised and regulated by the UK Financial Conduct Authority. Camco has offices in Auckland, Helsinki, Johannesburg, London and Nairobi. camco.fm
About REPP 2’s investors
Green Climate Fund
The Green Climate Fund (GCF) is the world’s largest dedicated climate fund. GCF’s mandate is to foster a paradigm shift towards low emission, climate-resilient development pathways in developing countries. GCF is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) and serves the 2015 Paris Agreement, supporting the goal of keeping average global temperature rise well below 2°C.
GCF has a portfolio of 286 projects worth USD 16 billion (USD 61.5 billion including co-financing) delivering transformative climate action in 133 developing countries. It has also provided over USD 630 million through its Readiness Support Programme to build capacity and help countries develop long-term plans to fight climate change. www.greenclimate.fund
Norfund
Norfund is the Norwegian Investment Fund for developing countries. Our mission is to create jobs and to improve lives by investing in businesses that drive sustainable development. Norfund is owned and funded by the Norwegian Government and is the Government’s most important tool for strengthening the private sector in developing countries, and for reducing poverty.
Norfund’s committed portfolio totals USD 3.6 billion USD in Sub-Saharan Africa, South/Southeast Asia, and Latin America. Norfund also manages the Norwegian Climate Investment Fund that aims to contribute to reducing or avoiding greenhouse gas emissions by investing in renewable energy in developing countries with large emissions from coal and other fossil fuel production. www.norfund.no
REPP
The Renewable Energy Performance Platform (REPP) was set up in 2015 to mobilise private sector development activity – and investment – in small to medium-sized projects (typically up to 25MW) in Sub-Saharan Africa. REPP is funded by UK International Development and managed by Camco. Its funding is UK International Climate Finance (ICF), managed through the Foreign, Commonwealth and Development Office (FCDO). repp.energy
BIO
The mission of the Belgian Investment Company for Developing Countries (BIO) is to promote the establishment of a strong private sector in developing and emerging countries, to enable them to access growth and sustainable development, within the framework of the Sustainable Development Goals. BIO was created in 2001 with the Belgian Federal State as sole shareholder. Its ultimate goal is to help strengthen the private sector in developing countries. www.bio-invest.be
Ceniarth
Ceniarth is an impact-first, single-family office that focuses on investments benefitting underserved communities globally. Ceniarth deploys capital to funds, financial intermediaries, and social enterprises that support marginalised and vulnerable populations. They invest with an emphasis on sectors such as energy access, agriculture, affordable housing, financial inclusion, and climate justice, prioritising investments that are catalytic in nature. ceniarthllc.com
FMO
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track-record in empowering entrepreneurs to make local economies more inclusive, productive, resilient and sustainable. FMO focuses on three sectors that have high development impact: Agribusiness, Food & Water, Energy, and Financial Institutions. With a total committed portfolio of EUR ~13 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
Important information:
This press release is provided solely for informational purposes. This press release or the information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or financial instruments, nor is it intended as an invitation to otherwise invest in REPP 2 or any other investment platform managed by Camco.
Comments