World Bank member International Finance Corporation (IFC) has formed a partnership with Gaia Energy to create a joint platform for the development of wind and other renewable energy projects in Africa.
Image: The International Finance Corporation (IFC) headquarters in Washington, D.C. Photo: Courtesy of AgnosticPreachersKid/Wikipedia.org
Gaia Energy is renewable energy developer from Morocco and is active across 10 countries in Africa. The joint platform will have a pipeline of 22 projects in nine countries in North, West and East Africa, with a total electricity generating capacity of more than 3GW.
The pipeline of projects, which was originally developed by Gaia Energy, will be expanded progressively into new countries across the continent.
Gaia Energy founder and president Moundir Zniber said: “IFC’s expertise in financial structuring and mobilization as well as its environmental and social safeguards ideally complements Gaia’s tailor-made approach to develop projects in new markets.
“Our partnership is a key step in expanding our business in the countries where we are present, and hopefully beyond. IFC and Gaia share the same values and vision regarding sustainability and the importance of South/South Cooperation to build tomorrow’s Africa. Both work to power the continent through the adoption of renewable energies and sustainable development principles.”
The joint platform will be implemented under IFC InfraVentures and will receive €114m financial support from Finland-IFC Blended Finance for Climate Program.
IFC InfraVentures is a $150m infrastructure development fund created as part of World Bank’s efforts to increase the pipeline of bankable projects in developing countries.
IFC Infraventures Sub Saharan Africa head David Donaldson said: “Wind energy and renewable energy in general are priority areas identified in the World Bank Group’s strategy to advance climate solutions led by the private sector. IFC is pleased to partner with Gaia Energy and leverage a quality project pipeline in countries with strong wind potential.”
With nearly 650 million Africans lacking access to electricity, energy gap is considered to be a major impediment for Africa’s development. Renewable energy is expected to provide an opportunity to accelerate access to clean, affordable electricity in the country.