EU greenlight to a €50m guarantee to support GreenCo’s expansion within SADC
The Operational Board of the European Fund for Sustainable Development plus (EFSD+) has given a positive opinion to €6.05 billion in financial guarantees to support 40 investment programmes in Sub-Saharan Africa, Latin American and Asia Pacific.
The guarantees are expected to generate more than €50 billion in investments in key sectors of Global Gateway, such as renewable energy, digital infrastructure and climate resilience and health. The package also includes a new green bond programme.
European Fund for Sustainable Development plus (EFSD+) has given the green light to a €50m guarantee to support GreenCo’s expansion within the Southern African Development Community, including Zambia, Namibia, Zimbabwe and South Africa.
The proposal was developed with and submitted by the Danish Investment Fund for Developing Countries (IFU), one of GreenCo’s valued investors. The guarantee provides a backstop to long term market risk on the Southern African Power Pool and will cover outstanding debt lent to IPPs in GreenCo’s portfolio in the unlikely event that despite GreenCo’s operational mitigation capabilities and the significant liquidity protection it is able to provide, GreenCo becomes unable to fully service the PPA.
The Operational Board of the European Fund for Sustainable Development plus (EFSD+) has given a positive opinion to €6.05 billion in financial guarantees to support 40 investment programmes in Sub-Saharan Africa, Latin American and Asia Pacific. The guarantees are expected to generate more than €50 billion in investments in key sectors of Global Gateway, such as renewable energy, digital infrastructure and climate resilience and health. The package also includes a new green bond programme.
The programmes will be implemented by European Financial Institutions, such as the European Investment Bank, the European Bank for Reconstruction and Development, and national development banks. In total, 20 financial partners participate in the EFSD+ guarantee programme, seven of which for the first time.
The EFSD+ is a financing tool of Global Gateway, and the financing arm of the EU's Neighbourhood Development, International Cooperation Instrument (NDICI) - Global Europe. It de-risks investments with budgetary guarantees and thus attracts more private investment to emerging and developing country markets.
