Across the 15 countries that make up the South Africa Development Community, less than a quarter of the population have access to electricity, while in rural areas that number goes down to 5 percent. Africa GreenCo is a public-private-partnership between African governments, the private sector and international financial institutions to create a dynamic new participant in the Southern African Power Pool (SAPP). Africa GreenCo will be a regional creditworthy intermediary offtaker and power services provider, reducing the credit risk and therefore cost of renewable energy generation projects. Its initial focus will be on supporting projects in Zambia prior to expanding into other SAPP member countries. Africa GreenCo’s transformative role is to mobilise significant private sector finance for the sector, to increase the liquidity of and reliance on the SAPP markets for risk mitigation and begin to diversify away from the current model of African governments taking on heavy contingent liabilities to secure individual energy projects. Ultimately, improving energy access will enhance education, health care, and stimulate economic development in a part of the world with the highest concentrations of people living in poverty.
More information about this partnership is available here.
Image: REUTERS/David Moir