The African Development Bank Group has approved a $5.65 million reimbursable grant from the Sustainable Energy Fund for Africa (SEFA) to pilot a new financing mechanism intended to expand clean energy access in some of the continent’s most fragile states. Matched by an equivalent contribution from the Nordic Development Fund (NDF), the initiative launches an $11.3 million Peace Renewable Energy Certificate (P-REC) Aggregation Facility, aimed at directing capital to mini-grid projects in countries where conflict and underinvestment have left millions without electricity.
The facility, to be managed by Camco Clean Energy alongside Energy Peace Partners, will operate across 14 frontier markets, including Burundi, the Central African Republic, Chad, the Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Nigeria, Sierra Leone, Somalia, South Sudan, Sudan and Uganda. Developers in these countries will receive upfront funding in exchange for renewable energy certificates, which will then be sold to multinational companies seeking to meet sustainability commitments.
A new tool for financing energy in fragile states
The Aggregation Facility is expected to deliver roughly 71 megawatts of renewable energy and about 240,000 new electricity connections, providing first-time access for an estimated 856,000 people—around half of them women. It forms part of Mission 300, a joint effort by the African Development Bank and the World Bank to connect 300 million Africans to electricity by 2030.
João Duarte Cunha, head of the Bank’s Renewable Energy Funds Division, described the initiative as a necessary shift in climate finance. “Lack of access to capital for rural electrification continues to be a major hurdle for universal energy access, particularly in countries experiencing conflict and fragility,” he said. “This innovative, first-of-its-kind facility can unlock new sources of commercial funding for private-sector mini-grids. This is the kind of market-making needed to advance Mission 300.”
Partnerships anchored in climate resilience
For the Nordic Development Fund, the project underscores the need to channel climate finance toward the most vulnerable communities. “Countries in Sub-Saharan Africa facing fragile and conflict-affected situations urgently need support and access to clean, reliable energy solutions,” said NDF Managing Director, Satu Santala. “By supporting this initiative, we strengthen Nordic climate leadership—anchored in partnership, innovation and responsibility.”
Camco CEO Geoff Sinclair added that the facility offers “low-cost, non-dilutive capital” to developers, helping expand clean-energy access while creating jobs and supporting local economic activity.
Energy Peace Partners co-founder Sherwin Das highlighted the broader social impact. “Most people without electricity on the continent live in fragile and conflict-affected states, where renewable energy can significantly improve health, education, safety and security outcomes,” he said. “The P-REC Aggregation Facility can accelerate that transition by turning corporate climate ambition into upfront capital for developers who would otherwise struggle to close their projects.”
