https://www.engineeringnews.co.za
Africa|Energy|Environment|Export|Financial|Health|Infrastructure|Projects|Renewable Energy|Renewable-Energy|Water|Infrastructure
Africa|Energy|Environment|Export|Financial|Health|Infrastructure|Projects|Renewable Energy|Renewable-Energy|Water|Infrastructure
africa|energy|environment|export|financial|health|infrastructure|projects|renewable-energy|renewable-energy-company|water|infrastructure

Impact manager Acre raises $100m for African climate infrastructure

17th April 2024

By: Reuters

  

Font size: - +

Two former BNP Paribas bankers have raised almost $100-million for a new fund which aims to unlock billions of dollars of funding for climate-aligned infrastructure projects in Africa.

Acre Impact Capital, a private-debt impact investment manager, is looking to address the estimated $100-billion annual infrastructure financing gap on the continent by providing a portion of the unsecured funding for export finance projects.

Typically, export credit agencies guarantee up to 85% of loans and require the rest to be raised privately, yet banks' willingness to fund the remainder has declined as such projects carry a higher capital charge and can be hard to reinsure.

As result, as many as half of all deals that an export credit agency would back do not get done, Acre CE Hussein Sefian told Reuters.

"We enable a transaction that would not happen otherwise as there is no insurance capacity and banks are not able to (without it)," he said. "We can come in and help them close a deal by providing that 15%, that’s really where we add value in the market."

The fund, which aims to back projects in areas including renewable energy, health, food and water, will look to mobilise $5.60 of private sector capital for each dollar invested, he said. Acre will charge a management fee for running the fund.

Among the fund's backers are the European Investment Bank, commercial lenders including Standard Bank and Rand Merchant Bank and specialist "impact" investors, which seek to achieve a measurable social impact as well as making a financial return.

Export credit agencies, such as UK Export Finance support some $250-billion of annual financing to emerging markets, according to the United Nations Environment Programme Finance Initiative, making them an important source of funding for developing countries.

By contrast, multilateral development banks, such as the World Bank provide around $260-billion annually, UNEP FI added.

Edited by Reuters

Comments

Showroom

SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

On-The-Air (17/05/2024)
On-The-Air (17/05/2024)
17th May 2024 By: Martin Creamer
Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.271 0.319s - 152pq - 2rq
Subscribe Now