After signing a framework agreement with Energise Africa in June 2023, CEI Africa is excited to sign an extension to the initial framework agreement to continue its partnership. Under the extended framework agreement, the crowdlender Energise Africa can further access a credit facility of EUR 2.5 million to co-finance qualified companies in the access to clean energy sector alongside retail investors who invest via Energise Africa’s platform.
This collaboration aims to strengthen Energise Africa‘s capacity to invest in the African off-grid energy sector by mitigating the risk of projects for private crowd investors. It will also provide a Technical Assistance grant to strengthen the platforms’ capacity in key operational areas such as technical and legal due diligence.
CEI Africa’s funding will be blended with finance raised from crowdlending campaigns and may be used either as a subordinated loan or pari-passu loan alongside Energise Africa’s crowd investors. Under this extended partnership, the facility is expected to catalyse at least USD EUR 5 M of private capital into the off-grid energy sector. In addition, under this extension, CEI Africa’s funding can be further deployed into green mini-grid projects to help Energise Africa achieve their deployment objective and achieve additional impact.
Ray Coyle, CEO of Energise Africa, comments: “The CEI Africa Framework Agreements strengthen Energise Africa’s ability to execute on the joint pipeline and continue the growth of the platform’s off-grid energy portfolios. Energise Africa is committed to financing companies in the access to electricity sector. CEI Africa’s funding will help us to mitigate the risk associated with the investments on our platforms, which has the potential to benefit our many investors. We are also grateful to CEI Africa for the Technical Assistant grant, as this will enable us to explore new markets and new sectors.”
Claudia Vroom, member of the Executive Board of CEI Africa, said: “We are delighted to announce an extension of our framework agreement and continued partnership with Energise Africa. This credit facility will further leverage investment in access to clean energy in rural sub-Saharan Africa. CEI Africa is also further excited by the new management team to drive Energise Africa’s deployment targets and strategy and to increase its investment in off-grid energy and green mini-grid projects in Sub-Saharan Africa”.
About CEI Africa
CEI Africa was established by the German development finance institution KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) in 2021 to improve access to energy for rural and peri-urban households and enterprises in Sub-Saharan Africa. In 2022, the Swiss Development Cooperation (SDC) joined as a contributor to CEI Africa. CEI Africa is managed by Triple Jump and implemented together with partners Persistent and GreenMax Capital Group. CEI Africa works with financiers, off-grid solar and mini-grid experts, to develop investment solutions that bridge the financing gap in the most challenging access to energy sub-sectors.
About Energise Africa
Energise Africa is a professionally managed Crowdlender with a strong track-record in providing debt capital to SMEs in the access to energy sector across Sub-Saharan Africa.
