The African Development Bank emerged as Development Finance Institution of the Year at the 2020 African Solar Industry Solar Award (AFSIA), in recognition of its increasing solar energy footprint across Africa. LHGP Asset Management is proud to have contributed to this success. We have a strong and productive relationship with the Bank as fund manager and advisor, mobilising over US$500m to date – and expectations of over $1bn through our various platforms.
For this award, the focus was on our dedicated energy access fund, Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI-OGEF), which deploys flexible debt instruments across Africa to help scale up household access to sustainable and reliable power. Through an innovative blended finance structure that incorporates the debt and equity from AFDB, Nordic Development Fund, Global Environment Facility, KfW, European Commission, All On, Calvert Impact Capital and Prudential Insurance Company, in the Bank’s own words: “OGEF set a new standard.”
The Sustainable Energy Fund for Africa (SEFA), a multi-donor Special Fund managed by the African Development Bank, spearheaded the establishment of innovative blended finance initiatives such as the $95 million FEI OGEF, one of the largest African strategies for financing household solar businesses. FEI OGEF has set a new standard for commercial and capital structures, as well as operating models, and is expected to contribute to the installation of over 1.5 million energy access solutions by leveraging $500 million of third-party investment.