FSD Africa Investments Commits $19.5M to Boost Climate Resilience in Africa - IT News Africa | Business Technology, Telecoms and Startup News

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FSD Africa Investments (FSDAi), the investing arm of FSD Africa, announced its decision to invest $19.5 million in support of climate...

FSD Africa Investments , the investing arm of FSD Africa, announced its decision to invest $19.5 million in support of climate adaptation and climate-aligned infrastructure projects in Africa and to promote the continent’s resilience to climate change.

US$3 million into Spark Energy Services , which is designed and managed by climate and impact fund manager Camco to provide financing to captive solar and energy efficiency developers in Sub-Saharan Africa. The platform seeks to address the lack of financing available to developers of smaller scale projects by innovatively aggregating small projects to reduce transaction costs and diversify risk.

One of FSDAi’s distinctive features is its mandate to take significant investment risk. FSDAi fills an important funding gap by assuming the commercial risk of novel financial solutions that neither development finance institutions nor private investors are prepared to take.The new investments will be announced by Andrew Mitchell, UK Minister for Development, at a joint event being held by FSD Africa and PIDG during the Africa Climate Summit on September 5th.

It is one of a number of transactions and market-building initiatives being unveiled by FSD Africa during the Summit which are designed to create a more innovative financing environment and boost the participation of international and domestic private capital in Africa’s green economy.

 

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