The Foundation for Clean Energy and Energy Inclusion for Africa (CEI Africa) has agreed two €3m (£2.6m) co-financing partnerships with ethical crowdfunding platforms Lendahand and Energise Africa.
Under the framework agreements, Lendahand and Energise Africa can access a €3m credit facility each, which can be used to fund eligible projects alongside their existing investors.
CEI Africa was established by the German state-backed development finance lender KfW to improve access to energy in sub-Saharan Africa.
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The collaboration aims to strengthen the two platforms’ joint capacity to invest in the African off-grid energy sector, Lendahand said, through de-risking projects for retail investors and the provision of a technical assistance grant.
The technical assistance grant, provided by CEI Africa, aims to strengthen the platforms’ capacity in key operational areas such as technical and legal due diligence.
The funding agreements are expected to catalyse €12m of private retail investment into the off-grid energy sector.
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“The CEI Africa Framework Agreements strengthens Lendahand’s and Energise Africa’s ability to execute on the joint pipeline and continue the growth of the platforms’ off-grid energy portfolios,” said Daniel van Maanen, chief financial officer of Lendahand.
“Lendahand and Energise Africa are committed to financing companies in the access to electricity sector. CEI Africa’s funding will help us de-risk crowd loans on our platforms, benefiting our many investors. We are also grateful to CEI Africa for the technical assistance grant, as this will enable us to explore new markets and new sectors.”
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“Having this new partnership with CEI Africa is a positive step forward for both Energise Africa and Lendahand, helping us de-risk investment for our community of investors,” said Lisa Ashford, chief executive of Energise Africa.
“It will also further our drive to enter into more impactful sectors, enabling retail investors to support organisations in emerging economies accelerating achievement of the UN SDGs.”
Claudia Vroom, member of the executive board of CEI Africa, added: “We are delighted to announce the signature of CEI Africa’s first agreement with crowdfunding platforms. This credit facility will leverage investment in access to clean energy in rural sub-Saharan Africa. CEI Africa has performed an extensive assessment of Lendahand and Energise Africa, and the crowdfunders have a robust platform that allows effective underwriting to off-grid energy companies, loan operations, and compliance with CEI Africa’s funding requirements. Lendahand and Energise Africa are key partners for CEI Africa in implementing its mandate to promote access to electricity companies in Africa together with retail investors.”
Lendahand and Energise Africa have a joint venture in the UK called Lendahand Ethex, which offers Innovative Finance ISA-eligible investments into renewable energy projects in Africa.
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