International Solar Alliance (ISA) announced that it has entered into exclusive discussions with Africa50 to serve as a potential investment manager for its proposed Africa Solar Facility (ASF).
The ASF is a $200 million initiative designed to unlock investment in distributed solar projects across Africa, an ISA statement said.
By offering tailor-made and cost-effective financing solutions, the facility aims to bridge the gap in a currently underserved market, where smaller project sizes and high perceived risks have hindered investment despite the critical need for clean energy.
The ASF will play a vital role in expanding energy access, accelerating solar deployment, and driving sustainable development across the continent, it stated.
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According to the statement, this decision follows a public expression of interest (EOI) process initiated by ISA to identify entities capable of serving as the ASF’s investment manager.
The announcement was made during the first-ever International Solar Festival 2024, organised by the ISA, an intergovernmental establishment that works with governments to promote solar power as a key climate solution and a sustainable way to transition to a carbon-neutral future.
ISA Director General Ajay Mathur said, "We are partnering with Africa50 to implement the first regional fund in Africa under the umbrella of ISA's flagship private sector programme, the Global Solar Facility".
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Mathur said that he believes Africa50 will be an ideal partner for ISA’s Africa Solar Facility, as it brings together the best of both the public and private sectors, combining public sector reach and resources with the private sector’s agility and investment capabilities.
"We hope to build the facility together with Africa50 and help provide clean electricity to 600 million people in Africa," he added.
Africa50 is a leading pan-African infrastructure investor and asset manager with a portfolio exceeding $8 billion that has mobilised over $4 billion in external funding for African infrastructure.
Supported by 32 African countries, the African Development Bank, and two African central banks, Africa50’s unique project development capabilities, expertise, strong track record of project development and implementation, and convening power make it a distinguished partner for this effort.
The ISA and Africa50 see strong synergies in their mission to accelerate clean energy deployment in Africa.
Subject to the successful conclusion of discussions and formalisation of necessary arrangements, Africa50 is expected to be appointed as ASF’s investment manager.
The ASF represents the first regional initiative under the broader Global Solar Facility (GSF), ISA’s flagship effort to provide innovative financial solutions for distributed solar projects worldwide.
The GSF is a significant milestone in ISA’s mission of improving energy access and security for its over 119 member and signatory countries that have committed to transitioning toward a carbon-neutral future through solar power.
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