By 
The U.S. International Development Finance Corporation (DFC) has committed a US$40 million facility to GreenCo, aimed at accelerating renewable energy investment in Zambia, South Africa and Namibia.
This decision stemmed from a partnership between DFC and Africa GreenCo Group (GreenCo), a renewable energy aggregator and trader, to boost the demand for renewable energy and create a stable energy market in Southern Africa.
In a statement issued Wednesday, the collaboration is expected to mobilize climate finance for key renewable energy infrastructure in the three countries where GreenCo operated.
“The commitment of this US$40 million facility will enhance GreenCo’s creditworthiness by providing a backstop for GreenCo’s payment obligations to private independent power projects (IPPs),” the statement said.
The facility positions GreenCo as a credit-worthy energy aggregator and offers IPPs an alternative to financially strained public utilities.
Pug Bennet, GreenCo’s Chief Investment Officer, emphasized that the partnership aligned with DFC’s goal of leveraging private sector capital to create a meaningful development impact, especially in critical sectors like energy.
“By financing renewable energy initiatives, DFC aims to help build resilient and clean energy infrastructure in Africa, a region heavily impacted by climate change,” Bennet added.
DFC’s facility would grant GreenCo access to a US$50 million liquidity buffer, backing over 350 megawatts of renewable energy capacity.
DFC Vice President of Energy, Erica Ehst, underscored the importance of the collaboration, stating that DFC is dedicated to supporting projects with sustainable, scalable outcomes.
Ehst explained that DFC’s support for GreenCo is part of a broader strategy to build clean energy economies across Africa, helping the region transition to a net-zero future while expanding economic opportunities and reducing poverty.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments