Our Sectors of Focus

Some of the beneficiaries of renewable energy financing in African countries include the following types of businesses, and financing may be country-specific in some cases:

(a) Developers of mini-grids, that is, small privately-owned and operated systems with generators of up to 10 megawatts (MW) capacity and a network that distributes power to several customers.

(b) Independent power producers, that is, privately-owned entities that generate and sell electricity to utilities and/or end users.

(c) Producers and distributors of energy-efficient clean-cooking stoves, which utilize clean fuels such as ethanol and technologies, instead of polluting fuel or inefficient equipment. This covers fuel and stoves, as well as fuel only (biomass, biogas, LPG, etc.).

(d) Manufacturers and distributors of stand-alone solar systems (off-grid), that is, household solar systems providing basic energy, typically used for lighting purposes. Solar home systems also include solar panels, battery, lighting, and solar device charging facilities. Larger systems include TVs, fans, and direct current refrigerators.

 

Agriculture focuses on the production of crops and livestock, while agribusiness encompasses all the economic activities surrounding that production from input supply to market and distribution. Agribusiness covers the production and distribution of farm-based goods. Companies in the agribusiness industry comprise all aspects of food production.
 
International Finance Corporation (IFC) plays a crucial role in supporting Africa’s  agribusiness,
with organizations like BII (British International Investment), Swedfund, and Norfund investing in initiatives that boost productivity, improve food security in rural areas and empower small holder farmers and agri-SMEs. 

Over a third of the world’s adult population has limited or no access to official financial services and most of these people live in Sub-Saharan Africa and Asia. Almost two billion people around the world – more than half of them women- lack access to formal financial services. As people continue to face the destabilizing impacts of global crises, such as the climate crisis, financial resilience becomes even more vital.
 
Cognizant of these facts, big international financial providers like the European Investment Bank (EIB) and International Finance Corporation (IFC) and other smaller financial institutions and investors provide capital to financial institutions like commercial banks and microfinance in emerging markets, including Africa that focus on sustainable livelihoods, investing in women and the society in general, creating impact and increasingly climate resilience. 
 
The objective is to establish financial inclusion that strives to remove the barriers that exclude people from participating in the financial sector and using these services to improve their lives. These institutions create opportunities and improve the economic security of their micro and small business clients with financial products such as loans, savings, and insurance. 
 
Financial institutions utilize the funds to benefit small businesses in the areas of agribusiness, smallholder farmers,mobile banking, small shops,digital infrastructure,women empowerment,the development of rural economies, among other sectors that make a significant impact in the communities they serve.

Our Sectors of Focus

Renewable Energy

Some of the beneficiaries of renewable energy financing in African countries include the following types of businesses, and financing may be country-specific in some cases:

(a) Developers of mini-grids, that is, small privately-owned and operated systems with generators of up to 10 megawatts (MW) capacity and a network that distributes power to several customers.

(b) Independent power producers, that is, privately-owned entities that generate and sell electricity to utilities and/or end users.

(c) Producers and distributors of energy-efficient clean-cooking stoves, which utilize clean fuels such as ethanol and technologies, instead of polluting fuel or inefficient equipment. This covers fuel and stoves, as well as fuel only (biomass, biogas, LPG, etc.).

(d) Manufacturers and distributors of stand-alone solar systems (off-grid), that is, household solar systems providing basic energy, typically used for lighting purposes. Solar home systems also include solar panels, battery, lighting, and solar device charging facilities. Larger systems include TVs, fans, and direct current refrigerators.

Agriculture and Agribusiness

Agriculture focuses on the production of crops and livestock, while agribusiness encompasses all the economic activities surrounding that production from input supply to market and distribution. Agribusiness covers the production and distribution of farm-based goods. Companies in the agribusiness industry comprise all aspects of food production.
 
International Finance Corporation (IFC) plays a crucial role in supporting Africa’s  agribusiness,
with organizations like BII (British International Investment), Swedfund, and Norfund investing in initiatives that boost productivity, improve food security in rural areas and empower small holder farmers and agri-SMEs. 
 

Financial Institutions

Over a third of the world’s adult population has limited or no access to official financial services and most of these people live in Sub-Saharan Africa and Asia. Almost two billion people around the world – more than half of them women- lack access to formal financial services. As people continue to face the destabilizing impacts of global crises, such as the climate crisis, financial resilience becomes even more vital.
 
Cognizant of these facts, big international financial providers like the European Investment Bank (EIB) and International Finance Corporation (IFC) and other smaller financial institutions and investors provide capital to financial institutions like commercial banks and microfinance in emerging markets, including Africa that focus on sustainable livelihoods, investing in women and the society in general, creating impact and increasingly climate resilience. 
 
The objective is to establish financial inclusion that strives to remove the barriers that exclude people from participating in the financial sector and using these services to improve their lives. These institutions create opportunities and improve the economic security of their micro and small business clients with financial products such as loans, savings, and insurance. 
 
Financial institutions utilize the funds to benefit small businesses in the areas of agribusiness, smallholder farmers,mobile banking, small shops,digital infrastructure,women empowerment,the development of rural economies, among other sectors that make a significant impact in the communities they serve.

Trade Finance

Financing trade in Africa faces a significant “trade finance gap”, with institutions like the African Development Bank (AfDB) and the African Export-Import Bank (Afreximbank) actively working to bridge it through various programs and initiatives.

The Challenge: The Trade Finance Gap

High Demand, Low Supply

The demand for trade finance in Africa is substantial, but the availability of funding from international lenders often falls short—creating a significant gap.

Estimated Gap

The trade finance gap in Africa is estimated at around USD 81.8 billion annually.

Factors Contributing to the Gap

  • De-risking: Some international banks are reducing their involvement in African trade finance due to increased regulatory scrutiny and perceived higher risks.

  • Regulatory Issues: Stringent international standards such as Anti-Money Laundering (AML) and Know Your Customer (KYC) rules, along with rising compliance costs, make trade finance in Africa more complex and expensive.

  • Weak Credit Information Systems: The lack of robust credit information systems increases the perceived risk for lenders.

  • High Costs: Trade finance in Africa is expensive by international standards, particularly for small and medium-sized enterprises (SMEs).

Our Partnership

We have partnered with African Global Trade Finance (AGTF), an international non-bank financial institution headquartered in the United Kingdom, to provide short-term loans of up to $2 million for up to 180 days.

These loans are available to qualified importers and exporters of agricultural products, non-perishables, and other finished goods from Sub-Saharan Africa, in an effort to alleviate the financing challenges they face.

Types of Financing Available

The types of financing available depend on the applicant’s country in Sub-Saharan Africa. Not all applicants will qualify for every option. Available trade finance solutions include:

  • Pre-shipment Finance

  • Post-shipment Finance

  • Import Finance

  • Storage Finance

  • Receivables/Discounting Finance

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Hotel Lobby

Project Finance

Project finance provides debt, and in some cases, equity financing for businesses in Sub-Saharan Africa, in the following sectors: renewable energy, hospitality,(hotel, resorts, restaurants, event centers), commercial and mixed use, and healthcare. Construction projects can be financed from ground up including the cost of land. Minimum debt financing is $250 million;a lesser amount may be available from other providers.