Africa REN Development
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
The contracting party for this project is Africa REN Development ("ARD"). ARD is a developer of clean and sustainable infrastructures in West Africa, and will typically cover all development costs until a project has reached financial close, at which point, Africa REN Energy ("ARE") may purchase the developed asset for construction and operation. ARE has the right (not the obligation) to purchase solar and other renewable assets developed by ARD. ARE has been operating in the region since 2015, and it has developed and manages the 25 MW Senergy 2 solar power plant in Senegal, the Kodeni Solar power plant of 38MW in Burkina Faso, and the WALO storage project. FMO is an equity shareholder in ARE and participates in some of the development costs ARD incurs through repayable development contributions.
What is our funding objective?
The objective of this EUR 2m development contribution is to participate in some of the development costs incurred by ARD. This is being used towards several projects in their pipeline. Currently, three projects are being developed using this contribution: a 38MW expansion to the existing Kodeni Solar PV site, a street lighting project in Benin, and a 2x50MW Solar Park in Guinea, most recently.
Why do we fund this investment?
The Africa REN platform develops, constructs, and operates (greenfield) renewable energy projects in low-income sub-Saharan countries. All projects owned by the Africa REN platform will provide clean and reliable electricity to countries that have low electrification rates, at lower prices than current thermal power stations. Africa REN aims to secure diversification of the electricity mix, an increase in (specifically rural) energy access, sustainable local employment, and transfer of knowledge and competencies in the West African region. Africa REN is committed to sustainable development and to ensuring that the environment and society at large benefit from its projects.
What is the Environmental and Social categorization rationale?
This development contribution loan is targeted to support provisional E&S category B+ projects in the development phase, which will be confirmed following the completion of environmental and social (E&S) risk assessments, including an Environmental and Social Impact Assessment (ESIA) aligned with the IFC Performance Standards (PSs) and the E&S site survey completion. IFC PS1-PS4 are expected to be applicable, as well as contextual risks that require to be managed. E&S risks and impacts in relation to land acquisition (PS5) and biodiversity (PS6) will be ascertained as part of the ESIA.
More investments
| Date | Total FMO financing |
|---|---|
| 11/13/2024 | EUR 0.50 MLN |
| 8/6/2024 | EUR 0.10 MLN |
| 7/12/2023 | EUR 0.50 MLN |
- Website customer/investment
- https://www.africa-ren.com/en/
- Region
- Africa
- Country
- Africa
- Sector
- Energy
- Publication date
- 10/1/2025
- Effective date
- 9/8/2025
- Total FMO financing
- EUR 0.40 MLN
- Funding
- Building Prospects
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+