The Green Climate Fund (GCF) has given its approval for the allocation of $50 million in equity to REPP 2, a novel debt fund that offers an opportunity to invest in the rapidly expanding renewable energy sector in sub-Saharan Africa. REPP 2 is being developed by Camco, a climate and impact fund manager, with a target fund size of $250 million. This fund is designed to generate substantial climate, economic, and gender-related impacts while also ensuring sustainable returns for its investors.

Recent research highlights a significant challenge in sub-Saharan Africa, where approximately 590 million people lack access to electricity. The International Energy Agency estimates that $22 billion is required annually to provide reliable energy access throughout the continent by 2030, in alignment with the UN’s Sustainable Development Goal 7.

Simultaneously, Africa is grappling with an escalating series of climate-related challenges, and its nations need an estimated $2.8 trillion by 2030 to fulfill their Nationally Determined Contributions under the Paris Agreement.

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REPP 2 has been structured as an innovative blended finance facility, leveraging a combination of public, private, and commercial funding to invest in small-scale and decentralized renewable energy projects in sub-Saharan African countries. Through its private sector approach and a strong focus on supporting communities vulnerable to climate change, the fund is expected to make 35 to 40 investments over its lifetime. These investments will support the development of decentralized renewable energy sources and enhance the resilience of national grid infrastructure, thereby promoting economic development in sub-Saharan Africa.

It is anticipated that REPP 2 will provide new or improved access to clean, reliable, and affordable power to 7.7 million people across Africa. This will not only increase economic opportunities but also enhance access to productive energy-related activities. Furthermore, the fund aims to mitigate 12.7 million tonnes of carbon dioxide equivalent in greenhouse gas emissions over the lifetimes of its projects. Additionally, it intends to invest $70 million in projects aligned with 2X’s gender lens investing criteria and mobilize $786 million in third-party funding to promote green growth in target countries.

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The blended finance structure of REPP 2 represents an evolutionary advancement from the $120 million REPP facility, which was previously fully funded by the UK’s Foreign, Commonwealth, and Development Office. This development follows the signing of an indicative term sheet by the REPP board for a junior equity investment of up to $50 million from REPP into REPP 2.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard