CTI PFAN Africa Forum for Clean Energy Financing (AFRICEF-2)
Southern and East Africa Lead the Way for the Next Generation of Clean Energy Projects
Ten clean energy projects that could reduce greenhouse gas emissions across Africa by ca. 287,000 metric tonnes a year, were presented to investors in Johannesburg at the CTI PFAN Africa Forum for Clean Energy Financing (AFRICEF-2).
More than 100 financiers, clean energy experts and representatives of financial institutions from across Africa and overseas participated in the Forum. The meeting was organized by the Climate Technology Initiative’s Private Financing Advisory Network (CTI PFAN), a global multilateral initiative dedicated to connecting clean energy businesses with financing and “bridging the gap” between clean energy project developers and investors.
“By matching project developers from around the region with investors, this forum helps make projects happen and increases the flow of investment into developing clean energy markets in Africa”, said Peter Storey (CTI PFAN Global Coordinator).
The projects showcased at the Forum, with a total aggregate investment value in excess of USD 297 million, included biofuels, solar, biogas, waste to energy initiatives developed by entrepreneurs and companies from Botswana, Kenya, Malawi, Rwanda, Uganda, and Zimbabwe. The Forum also showcased two new technology developments in the area of concentrated solar power and roadway power generation with both technologies being developed by African companies.
“What is so exciting about the CTI PFAN programme is that it is not about process, but instead is facilitating the implementation of real projects, having not only economic returns, but social and environmental benefits as well”, said CTI PFAN Manager, Elmer Holt.
CTI PFAN screens business plans, selects the most economically viable and environmentally beneficial projects, and provides multiple rounds of coaching and guidance before projects are presented to investors. CTI PFAN is now working on more than 60 clean energy projects across Africa; a previous cycle of the AFRICEF Forum held in 2010, led to 4 of the 9 projects showcased raising USD 13.6 million of investment for implementation of their business plans. Globally, CTI PFAN has raised over USD 380 million dollars of investment for clean energy and has a development pipeline of over 160 projects.
“The U.S. believes that Africa offers tremendous potential for increasing private sector financing in climate change technologies. PFAN’s model for assistance and capacity building can add tremendous value to this vision,” said Hon. Donald H. Gips (US Ambassador to the Republic of South Africa) who made a keynote address to the forum participants.
A panel of independent judges selected 4 of the 10 showcased projects as winners of the CTI PFAN Clean Energy Financing Awards. The winner was Bio Energy Resources Ltd. (BERL) from Malawi with a USD 4.5 million investment proposal for the scale-up of a biofuels plant for the production of bio-oil and organic fertiliser for the Malawian market from jatropha, grown by out-croppers and smallholder farmers. The runners up were Green Fuel Ltd with a USD 65 million project for the expansion of a bio-ethanol plant in Zimbabwe, Future Fuels Africa Ltd with a USD 8 million biogas waste-to-energy project from Botswana and Nexus Biodiesel Ltd from Uganda (USD 1.3 million). Sander Donker, COO of the winning BERL project complemented CTI PFAN and the sponsors on the organisation of the Forum and said that “this process has helped take our project to the next level and made us more attractive to investors; we are now confident of raising the necessary investment for our project implementation”.
Michael Feldner of E&Co, a fund manager attending the event said that “CTI PFAN is providing a vital link between investors and project developers and this forum is ideally tailored to creating deal flow for clean energy investors in Africa”.
The Africa Forum for Clean Energy Financing was sponsored by the Climate Technology Initiative (CTI), the Renewable Energy & Energy Efficiency Partnership (REEEP) , the U.S. Agency for International Development (USAID) and the International Center for Environmental Technology Transfer (ICETT) of Japan. Fundo De Energia (FUNAE) of Mozambique, South Africa National Energy Research Institute (SANERI), the Rural Electrification Agency of Uganda (REA) and the Private Sector Foundation of Uganda – Energy for Rural Transformation Programme (PSFU – ERT) are co-organisers of the Forum.