AfDB Launches First-of-Its-Kind $11.3M Facility to Fund Clean Energy in Fragile African States

The facility will be managed by Camco Clean Energy, in partnership with Energy Peace Partners, the organization behind the P-REC certification model.

In a landmark move to unlock financing for renewable energy in some of Africa’s most fragile regions, the African Development Bank (AfDB) Group has approved a $5.65 million grant to pilot an innovative financing mechanism that converts corporate climate commitments into direct funding for off-grid energy projects.

The initiative, known as the Peace Renewable Energy Certificate (P-REC) Aggregation Facility, represents a global first—using renewable energy certificates not just as a tracking tool, but as a primary funding instrument to support mini-grid deployment in conflict-affected and energy-poor countries.

Blended Finance to Tackle Energy Poverty

The AfDB grant, provided through the Sustainable Energy Fund for Africa (SEFA), is being matched by an equal $5.65 million contribution from the Nordic Development Fund (NDF), bringing total funding for the pilot facility to $11.3 million.

The facility will be managed by Camco Clean Energy, in partnership with Energy Peace Partners, the organization behind the P-REC certification model.

At its core, the mechanism creates a new financial pathway:

• Mini-grid developers receive upfront capital in exchange for future renewable energy certificates

• These certificates are then sold to global corporations seeking high-impact sustainability investments

• Revenues are channelled back into projects, providing hard currency financing in markets with limited access to capital

Targeting Fragile and Conflict-Affected Markets

The facility will support projects across 14 high-risk, under-electrified countries, including:

Burundi, Central African Republic, Chad, Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Nigeria, Sierra Leone, Somalia, South Sudan, Sudan, Uganda.

These are among the regions where traditional financing models struggle to operate, due to instability, weak infrastructure, and elevated investment risk.

Transformational Impact: Powering Over 850,000 People

The pilot is expected to deliver tangible, large-scale impact:

• 856,000 people gaining first-time access to electricity

• Approximately 240,000 new connections

• Around 71 megawatts of renewable energy capacity added

• Nearly 50% of beneficiaries expected to be women

Access to electricity in these contexts is linked to improvements in healthcare, education, safety, and economic opportunities, making the initiative both a climate and development intervention.

Aligning with Africa’s $300 Million Energy Access Goal

The project directly supports Mission 300, a joint AfDB–World Bank initiative aiming to connect 300 million Africans to electricity by 2030.

By introducing innovative financing tools, the facility addresses one of the biggest barriers to progress: lack of affordable capital for rural electrification, especially in fragile states.

“Lack of access to capital for rural electrification continues to be a major hurdle… particularly in countries experiencing conflicts and fragility,” said João Duarte Cunha of AfDB.“This is the kind of market-making needed to advance Mission 300 objectives.”

Turning Corporate Climate Commitments into Real Impact

A key innovation lies in leveraging corporate sustainability spending. Multinational companies voluntarily purchase P-RECs to meet climate goals—but unlike traditional carbon credits, these certificates are tied directly to new, high-impact energy projects in underserved regions.

“PAF will provide additional low-cost, non-dilutive capital to energy access projects in fragile states,” said Geoff Sinclair, CEO of Camco.“It will boost jobs, opportunities, and living standards.”

Energy Peace Partners emphasized the broader systemic impact:

“The majority of people without electricity live in fragile and conflict-affected countries… This facility converts corporate climate ambition into upfront capital for developers who would otherwise struggle to close projects,” said Sherwin Das, Managing Director.

Nordic Support Highlights Global Climate Leadership

The Nordic Development Fund’s participation underscores growing international collaboration in climate finance.

“Countries facing fragile situations urgently need access to clean, reliable energy solutions,” said Satu Santala, Managing Director of NDF.“This initiative advances sustainable energy where it is needed most.”

A New Model for Climate and Development Finance

The P-REC Aggregation Facility signals a shift toward market-based, scalable solutions that blend public funding with private capital to reach high-risk environments.

If successful, it could serve as a blueprint for:

• Expanding renewable energy access in fragile regions globally

• Mobilizing corporate capital at scale

• Reducing reliance on traditional aid and concessional finance

Looking Ahead

As Africa continues to face a significant energy access gap—with hundreds of millions still without electricity—innovative financing models like P-REC could play a pivotal role in accelerating progress.

By linking global capital with local energy needs, the AfDB-backed initiative represents a bold attempt to rewrite the rules of energy finance in the world’s most challenging markets.