Fund structuring for E+Co Clean Energy Funds in Africa and Asia

Background

E+Co is an investor that provides seed and growth capital to implement and expand sustainable renewable energy businesses in Africa, Asia and Latin America.  It targets small and growing businesses that typically employ between 10-150 staff members and are capable of absorbing investments generally between US$50,000 and US$2 million.

E+Co intends to restructure its current investment activities which are now organised globally, and establish regional investment vehicles in Africa, Asia and Latin America. This will allow a scale-up in activities and increase in opportunities to promote business models that expand access to clean energy.

Purpose

To develop and realise two new E+Co regional clean energy funds in Africa and in Asia.

 

Main Activities

  • Develop an operational plan for the Africa and Asia Clean Energy Funds, determining appropriate legal and governance structure
  • Structure specific features including risk mechanisms, financing for business development services, methodology for monitoring and evaluation of impact
  • Recruit and train specialised professionals for each fund
  • Promote and market funds among leading investors
  • Achieve initial investor commitments of $US 15 million for Africa fund and $US 60 million for Asia fund and begin investment by mid-2012

 

Expected Impact

  • Increased finance flowing into developing country clean energy projects from both local and global capital markets
  • Projected total of $US 150 million new investment in 60-120 clean energy projects in the two regions over next 10 years
  • Increased access to clean energy in underserved communities in South-East Asia and Sub-Saharan Africa
  • Funding model created which can be replicated in other regions such as Latin America

Project Information

Programme sector: 

RE & EE (Business&Finance)

Stage of project: 

Ongoing

Location: 

CN/China, ZA/South Africa, ID/Indonesia, GH/Ghana, TZ/Tanzania, UG/Uganda (VIetnam, Cambodua, Thailand, Nepal)

Duration: 

2011 - 2012

Budget: 

€ 299,951 including co-funding from Cofinancing of GEEREF project (majority)

Implementing agency: 

E+Co

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