AfDB backs $11.3m climate finance push to expand mini-grids in fragile African states
The African Development Bank Group has approved a $5.65 million reimbursable grant to pilot a new financing mechanism designed to unlock capital for renewable energy projects in some of Africa’s most fragile and energy-deficient markets.
The support, drawn from the Sustainable Energy Fund for Africa, will finance the Peace Renewable Energy Certificate (P-REC) Aggregation Facility an innovative platform aimed at converting corporate climate commitments into upfront funding for mini-grid developers.
The initiative is co-financed with an additional $5.65 million from the Nordic Development Fund, bringing total funding to $11.3 million. It will be implemented by Camco Clean Energy in partnership with Energy Peace Partners, the developer of the P-REC model.
The facility introduces a market-based approach that enables multinational companies to purchase renewable energy certificates generated by mini-grids serving conflict-affected and underserved communities. Revenues from these certificates will be advanced to developers as upfront capital, easing long-standing financing constraints in rural electrification.
Under the framework, long-term purchase agreements will be signed with developers across 14 frontier markets, including the Democratic Republic of Congo, Sierra Leone, Ethiopia and Nigeria. The structure is designed to provide early liquidity while recycling future certificate revenues back into high-risk, capital-constrained markets.
The programme is expected to deliver first-time electricity access to about 856,000 people, through roughly 240,000 new connections and 71 megawatts of installed renewable capacity. Women are projected to account for half of the beneficiaries, underscoring its inclusive development focus.
The intervention aligns with Mission 300, a joint African Development Bank and World Bank initiative targeting electricity access for 300 million Africans by 2030. It also seeks to close financing gaps in fragile and conflict-affected states, where traditional investment flows remain limited.
Officials describe the initiative as a first-of-its-kind climate finance instrument capable of mobilising private capital for decentralised energy systems in high-risk environments.
Beyond expanding energy access, the model is expected to support jobs, improve living standards and strengthen resilience in underserved communities by linking corporate sustainability spending directly to development outcomes.
The facility marks a broader shift in climate finance towards blended, market-driven solutions aimed at scaling infrastructure investment in Africa’s most challenging operating contexts.
