The Fund has already made three investments, including a rooftop solar energy company in Southern Africa, a grid-tied river hydroelectric project development in Kenya, and in a resource efficiency company focused on hybrid power systems, servicing telecom towers in Gabon and Nigeria. A further two investments are at very advanced stages and include renewable energy project developers with late-stage solar photovoltaic (PV) production sites in Southern Africa and Francophone West Africa.
The Fund will contribute to climate change mitigation and adaptation in two ways: it will increase the availability of and expand access to affordable, reliable, clean energy services (SDG 7 Affordable and Clean Energy). It will also contribute to climate mitigation (SDG 13: Climate Action) by creating additional mega-watts of grid-tied installed renewable energy capacity in Africa and by helping local companies switch to distributed renewable energy generation, thereby avoiding fossil fuel consumption (also SDG target 7.2: increasing the share of renewable energy in the global energy mix). Through investments in resource efficiency, the Fund may also contribute to waste management, materials recycling, waste to energy, water treatment (SDG 12: Responsible Production and Consumption) and limiting pollution.
SIFEM will focus on quantifying and measuring contributions to SDG 7 and SDG 13 through regular reporting on renewable energy installed capacity, renewable energy output (MWh/year) and GHG emissions reductions (metric tonnes of CO2e). MSCF II is expected to invest in at least 200 MW of clean energy capacity with a total GHG reduction of at least 84,000 metric tons per annum of CO2 equivalent.