AfDB approves US$ 5.65mln for new off-grid climate finance in fragile African states

KAMPALA, March 30, 2026 — The African Development Bank Group [AfDB] has approved a US$ 5.65 million reimbursable grant from the Sustainable Energy Fund for Africa [SEFA] to pilot the Peace Renewable Energy Certificate [P-REC] Aggregation Facility—an innovative initiative that will, for the first time, use renewable energy certificates as a direct financing instrument for a portfolio of mini-grids across some of Africa’s most fragile and energy-poor countries.

Co-financed by the Nordic Development Fund, which has committed an equivalent US$ 5.65 million, the US$ 11.3 million facility will be managed by Camco Clean Energy, a climate and impact fund manager, and Energy Peace Partners, a US-registered non-profit that developed the Peace Renewable Energy Certificate label.

certificates will be generated exclusively from small-scale mini-grid projects in conflict-affected and energy-poor communities, and purchased voluntarily by multinational companies seeking to maximise the social and environmental impact of their sustainability investments.

The facility will enter into long-term purchase agreements with qualifying mini-grid developers across 14 frontier countries—Burundi, Central African Republic, Chad, the Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Nigeria, Sierra Leone, Somalia, South Sudan, Sudan and Uganda.

It will provide developers with upfront payments in exchange for rights to the certificates generated by their projects. These certificates will then be sold to global corporate buyers, channelling hard currency back to developers operating in markets where commercial financing remains scarce.

An estimated 856,000 people across the 14 countries are expected to gain first-time access to reliable electricity, around half of them women, through approximately 240,000 new connections and 71 megawatts of new renewable energy capacity.

The project aligns fully with Mission 300, a joint initiative of the AfDB and the World Bank aimed at connecting 300 million Africans to electricity by 2030. The Nordic Development Fund is supporting these targets through its renewable energy portfolio and participation in the Development Partner Coordination Group.

“Lack of access to capital for rural electrification continues to be a major hurdle to achieving universal energy access on the African continent, particularly in countries affected by conflict and fragility. I am proud that SEFA is backing this innovative, first-of-its-kind facility, which tests a new climate finance product capable of unlocking fresh sources of commercial funding for private sector-led mini-grids. This is the kind of market-making needed to advance Mission 300 objectives,” said João Duarte Cunha, Manager of the Renewable Energy Funds Division and SEFA at the African Development Bank Group.

“Countries in sub-Saharan Africa facing fragile and conflict-affected situations urgently need support and access to clean, reliable energy solutions. At NDF, we are proud to contribute to the innovative Peace Renewable Energy Certificate (P-REC) Aggregation Facility, which helps deliver small-scale, off-grid renewable energy to communities with no, limited or disrupted access to power. By supporting this initiative, we also strengthen Nordic climate leadership—working in partnership, through innovation and responsibility, to advance sustainable energy solutions where they are needed most,” said Satu Santala, Managing Director of the Nordic Development Fund.

“PAF will provide additional low-cost, non-dilutive capital to energy access projects in fragile states. In doing so, it will expand access to clean energy, boosting jobs, opportunities and living standards. Camco is pleased to be working with Energy Peace Partners, SEFA and NDF on this important initiative,” said Geoff Sinclair, Chief Executive Officer of Camco.

“The majority of people on the continent without access to electricity live in fragile and conflict-affected countries, where renewable energy projects can have outsized impacts—improving health, education, safety and security outcomes. The P-REC Aggregation Facility, based on Energy Peace Partners’ Peace-REC label, can accelerate that transition by converting corporate climate ambition into upfront capital for renewable energy developers who might otherwise struggle to reach financial close,” said Sherwin Das, Managing Director of Energy Peace Partners.

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