Camco achieves first close on REPP 2 blended finance fund with USD 185 million in total commitments
London, 9 December 2024 – ARE Member and climate and impact fund manager Camco has reached first close on USD 107 million for its new REPP 2 debt fund to invest in the African grid of the future, with a further USD 78 million committed subject to conditions.
With backing from the Green Climate Fund (GCF), Norfund, FMO, BIO, Ceniarth and the Renewable Energy Performance Platform (REPP), which is funded by UK International Development, the achievement marks a significant milestone in Camco’s commitment to leading the transition to a net zero future in emerging markets.
REPP 2 is a pioneering fund aimed at delivering significant climate, economic and gender impacts while ensuring sustainable returns for investors in Africa’s fast-growing market for renewables. The fund is structured as a blended finance vehicle to leverage public and private investors to invest in sub-Saharan Africa’s distributed and small-scale renewable energy market. In doing so, REPP 2 is supporting the decarbonisation of the African energy system while contributing directly towards closing the USD 22 billion annual investment gap needed to meet SDG7 and deliver reliable electricity access to all.
Ben Hugues, REPP 2 Director at Camco, said: “Africa’s energy transition is happening. It is critical to invest in the businesses building the African energy grid of the future, which is decentralised, renewable and reliable.“This requires significant and urgent scaling up of finance to enable innovative companies to scale and generate both attractive returns and significant climate impact. It is so exciting to have so many world-leading investors on board who share our vision for Africa’s future and recognise the critical role of blended finance in the sector.”
Over its lifetime, REPP 2 aims to support the addition of 330 MW of new capacity and the mitigation of over 12.7 million tCO2e in emissions. This will provide clean energy access to more than 7.7 million people and enhance the resilience of approximately one million beneficiaries.
REPP 2 will be supported with a technical assistance facility funded by Norad to accelerate market growth in the sector by addressing both the financial and non-financial barriers that are currently impairing project development and slowing down investments.
Additional quotes from investors:
Diane Isenberg, Founder and Managing Director of Ceniarth, said: “As a private investor in the energy access sector for the past decade, Ceniarth has seen firsthand the opportunities and challenges in bringing reliable electrification to underserved communities in Africa. We are proud to be supporting Camco as the firm brings the right mix of hard-earned experience and expertise to finance the deployment of a range of energy solutions, from solar PV mini-grids to grid-connected projects, at scale.”
Tellef Thorleifsson, CEO of Norfund, said: “Norfund firmly believes that decentralised and small-scale renewable energy will play a central role in delivering the energy access needed for African countries to grow sustainably. We believe REPP 2 can be instrumental in enabling and unlocking financing for such projects under development that would otherwise often struggle to attract capital.”
Marnix Monsfort, Director of Energy at FMO, said: “There is a significant shortage of debt and equity financing for small independent power producers and for companies that provide last-mile energy delivery solutions in Africa, especially in Least Developed Countries. Camco’s strong commitment to high ESG standards and its dedication to delivering reliable electricity access in underserved areas make the REPP 2 blended finance fund an important player in closing this financing gap. For FMO, the fund aligns closely with our mission to reduce global inequalities and support initiatives that promote energy access.”
Kavita Sinha, Private Sector Facility Director at the GCF, said: “The Green Climate Fund is proud to be supporting REPP 2. By catalysing innovative business models and capital for clean energy solutions in a region most vulnerable to climate change, we are not only advancing the region’s sustainable development, but also contributing to global efforts to combat climate change. This commitment represents a significant step forward in building a low-carbon, resilient future for the communities of Sub-Saharan Africa while unlocking new opportunities for economic growth and energy access.”
Andrew Lucas, REPP Board member, said: “REPP is proud to be an anchor investor in REPP 2, which builds on what we’ve learned from REPP. The blended finance structure of REPP 2 has attracted a range of investors, from DFIs to private, underlining the critical role blended finance has in building the African grid of the future.”
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