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Ana Hajduka, Founder and CEO of Africa GreenCo.

Investment & Finance

DFC backs Africa GreenCo with US$40Mln liquidity facility

The USD 40 million facility will enhance GreenCo’s creditworthiness and enable investment in renewable energy in Southern Africa.

The United States International Development Finance Corporation (DFC) has extended a $40 million loan facility to energy trader and aggregator Africa GreenCo to back its payment obligations to renewable energy independent power producers. Africa GreenCo is the first private energy trading company in the Southern African Power Pool (SAPP).

According to Africa GreenCo, the USD 40 million facility will enhance GreenCo’s creditworthiness and enable investment in renewable energy in Southern Africa by facilitating the conclusion of power purchase agreements in the region, particularly in Zambia, Namibia, and South Africa.

“DFC’s involvement will further enhance our operations and enable us to scale our capacity to provide clean, affordable energy to more people across Southern Africa,” said Pug Bennet, GreenCo’s Chief Investment Officer.

“With DFC’s facility, GreenCo will be able to access USD 50m of Liquidity Buffer Capacity that will back over 350MW of renewable energy capacity,” added Bennet.

DFC highlighted that its investment in Africa GreenCo is part of its broader mandate to combat the effects of climate change by supporting renewable energy solutions in developing markets.

Additionally, DFC emphasised that it has made energy security a top priority and committed to help build resilient and clean energy infrastructure in Africa, a region disproportionately affected by the impacts of climate change.

“DFC is committed to supporting projects that create sustainable and scalable impacts. Our financial support to GreenCo is part of our ongoing effort to help build clean energy economies in Africa and support the region’s transition to a net-zero future,” stated Erica Ehst, DFC’s Vice President of Energy.

DFC says it will prioritise Africa in its climate finance strategy and invest in catalytic projects that provide long term solutions to climate-related challenges.

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