African Guarantee Fund Unveils $5 Billion Facility to Boost Energy Access in Africa

The African Guarantee Fund (AGF) has launched the Mission 300 Local Currency Guarantee Facility, aiming to mobilize $5 billion for energy access projects in Africa. This facility focuses on financing small and medium-sized enterprises (SMEs) in the Distributed Renewable Energy (DRE) sector.

This initiative is part of a larger strategy by the African Development Bank and the World Bank to provide electricity to 300 million Africans by 2030. The continent currently faces significant challenges, with 600 million people lacking electricity. An annual investment of $25 billion is needed to achieve universal energy access.

The Mission 300 Facility will partner with African governments and financial institutions to de-risk investments in renewable energy, benefiting from concessional financing. AGF's previous work with the Green Guarantee Facility has shown success in supporting SMEs and advancing sustainable development.