Africa GreenCo is a creditworthy renewable energy intermediary that will reduce energy prices and expand renewable energy supply by catalyzing private sector investment in Zambia.
P4G invested a total of US $1.6 million in this partnership through two rounds of funding – 2018 and 2019 scale-up funding.
Africa GreenCo has operationalized its business model in Zambia and is on track to begin implementation in 2020. The significance of this achievement is twofold: at a high level, it underscores the potential success and transformation achieved by multistakeholder partnerships for green growth; and on the ground level, it increases energy investment through the private sector to help mitigate climate change, improve security of supply, and improve efficiency in the power sector. GreenCo is actively expanding to other African countries and aims to support three gigawatts of new renewable energy generation capacity and mobilize US$5.6 billion of renewable energy investment by 2030.
P4G mobilized its ecosystem to engage with policymakers in Zambia to approve the business model. P4G accelerated GreenCo through on-going strategic advice and by engaging institutional investors to capitalize the business model. In parallel, P4G also raised visibility and credibility through global events including the P4G Copenhagen Summit in 2018 and an event on the sidelines of UNGA in New York in 2019. This focused approach of unlocking investments for impact ultimately led to an initial investment of $1.5 million from Denmark’s Investment Fund for Developing Countries and PIDG’s InfraCo Africa to operationalize the GreenCo business model. This illustrates an almost 100% increase in investor leverage because of P4G’s direct value-add.
Transforming Africa’s Renewable Energy Markets