The Green Climate Fund (GCF) has approved an equity allocation of USD 50 million to REPP 2, a newly established debt fund aimed at fostering investments in Sub-Saharan Africa’s rapidly growing renewable energy sector.
REPP 2 is being developed by climate and impact fund manager Camco as a USD 250 million fund designed to generate significant climate, economic, and gender impacts while ensuring sustainable returns for investors.
The latest research indicates that approximately 590 million people in Sub-Saharan Africa lack access to electricity. The International Energy Agency estimates that USD 22 billion is required annually to provide reliable energy access across the continent by 2030 to meet Sustainable Development Goal 7. Additionally, African countries need an estimated USD 2.8 trillion by 2030 to implement their Nationally Determined Contributions under the Paris Agreement.
REPP 2 is structured as a blended finance facility that leverages public, private, and commercial funding to invest in small-scale and decentralized renewable energy projects in Sub-Saharan African countries.
Over the fund’s lifetime, it is projected that REPP 2 will:
- Make 35-40 investments to support the development of decentralized renewable energy and enhance the resilience of national grid infrastructure, promoting economic development in Sub-Saharan Africa, particularly in Least Developed Countries.
- Provide new or improved access to clean, reliable, and affordable power to 7.7 million people across Africa, thereby increasing economic opportunities and access to productive energy use activities.
- Mitigate 12.7 million tonnes of carbon dioxide equivalent in greenhouse gas emissions over the projects’ lifetime.
- Invest USD 70 million in projects aligned with 2X’s gender lens investing criteria.
- Mobilize USD 786 million in third-party funding for green growth in target countries.
REPP 2 represents an evolution from the USD 120 million REPP facility, which was fully funded by the UK’s Foreign, Commonwealth, and Development Office (FCDO).
This development follows the signing of an indicative term sheet for a junior equity investment of up to USD 50 million from REPP into REPP 2. The combined junior equity investments totalling up to USD 100 million from the GCF and REPP are intended to safeguard capital and generate appropriate returns for REPP 2’s commercial investors.
Ben Hugues, Investment Director at Camco, expressed enthusiasm for this new venture, which builds on the successes and lessons from REPP and offers substantial commercial investment into Africa’s renewable energy sector, supporting the continent’s green growth potential. He emphasized the potential to deliver sustainable financial returns and multiple developmental, social, and environmental benefits.
Peter Coveliers, REPP Board member and one of the founders of the REPP initiative, highlighted the instrumental role of blended finance in attracting private sector funds to support a clean energy transition and green growth in Africa. He underlined the potential of REPP 2 to unlock significant additional investment capital for climate-related projects on the continent, building on REPP’s impressive legacy of achievements.
 has approved a USD 50 million equity allocation to REPP 2, a debt fund aiming to drive investments in Sub-Saharan Africa's burgeoning renewable energy sector. REPP 2 is structured as a blended finance facility and is set to make a significant impact on climate resilience, economic growth, and gender equality while delivering sustainable returns for investors. The fund will help bring reliable and clean energy access to millions and mitigate greenhouse gas emissions in the region.){kind=link}