Thursday, 10 April 2014

European Bank Provides $2.74m Grant For Africa's Energy Sector

The African Trade Insurance Agency (ATI) will receive a $2.74 million grant as part of a strategic partnership with the European Investment Bank (EIB) to upgrade Africa's energy sector.

The first phase of the agreement, which was signed by EIB Deputy Director General Jean-Christophe Laloux at the sidelines of the 5th EU-Africa Summit, will see ATI employ specialist skills in originating and underwriting energy sector projects this will help to improve key skills and understanding of energy investment which would in turn strengthen implementation of key energy projects.

African and European governments and business leaders gathered at the summit to map out an action plan aimed at strengthening cooperation in key areas including investments, climate change and security where they identifiedcapacity buildingas an important aspect of the initiative.

The ATI/EIB investment into Africa's energy sector is coming at a time when more than half of Africa's populations do not have access to electricity, leaving them to rely on kerosene lamps and charcoal stoves.

A number of private companies and entrepreneurs are now investing more in clean energy as a viable option for socio-economic development and increased standard of living for millions in Africa.

Speaking on the new investment, European Investment Bank Vice President, Pim van Ballekom said the new cooperation complements the European Investment Bank's wider commitment to support energy investment, as demonstrated in East Africa Africa's largest ever investment in the Lake Turkana Wind Power Project.

After completing the first phase of the agreement, ATI is expected to become one of the key partners and members in Africa for the Africa Energy Guarantee Fund (AEGF), a body created by the EIB in response to the UN Sustainable Energy for All (SE4All) which aims to enhance access to proper risk mitigation and credit enhancement tools for energy sector projects in Africa.


From Ventures Africa


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