AfDB approves Africa Renewable Energy Initiative

ABIDJAN (Capital Markets in Africa) – The Boards of Directors of the African Development Bank (AfDB) have endorsed the proposal by the Bank’s Management to serve as Trustee to administer and manage the resources of Africa Renewable Energy Initiative (AREI), and also to host the AREI Independent Delivery Unit as requested by African Heads of State and Government.

The AREI is an Africa-owned and Africa-led initiative of the African Union. It aims at harnessing Africa’s abundant renewable energy resources to help achieve the Sustainable Development Goals, enhanced well-being, and sound economic development by ensuring universal access to sufficient amounts of clean, appropriate and affordable energy; as well as help African countries leapfrog towards renewable energy systems that support their low-carbon development strategies while enhancing economic and energy security. In so doing the Initiative will ensure access to energy while addressing climate change. It is indeed Africa’s bold effort at transitioning to green growth.

AREI was launched at COP21 in Paris in December 2015 and is receiving strong international support from development partners who have committed to mobilizing at least $10 billion cumulatively between 2015 and now to harness Africa’s renewable energy potential and expand energy access across the continent.

AREI will have a governance arrangement consisting of a Board of Directors, a Technical Committee, an Independent Delivery Unit and a Trustee who shall serve as the Host of the Independent Delivery Unit. The Bank is grateful to France and Germany who have already committed Euro 6 million and Euro 2 million respectively to supporting the Independent Delivery Unit.

The Bank will consequently host AREI as an Open Access Global Fund within the Bank’s Power, Energy, Climate Change and Green Growth Complex. As an Open Access Global Fund accredited Implementing Agencies operating in Africa will be able to access the Fund. It will be functionally independent of the Trustee’s decision-making structures.

The Bank’s New Deal on Energy for Africa is a partnership-driven effort. AREI will be a strong partner in ensuring that Africa achieves universal access to energy and that the share of renewables in Africa’s energy mix is significantly ramped up.