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Uganda becomes the first African country to sign an agreement with the Regional Liquidity Support Facility (RLSF), which will provide protection for new small and medium-sized renewable energy projects (up to 39 to 50 MW) in sub-Saharan Africa. 19659002] The Facility is a joint initiative of the African Agency for Trade Assurance (ATI), a pan-African and multilateral guarantor and KfW with funding from the German Ministry of Economic Cooperation and Development.
The World Bank estimates that the continent must generate an annual capacity of 7,000 MW, but such an increase in production capacity can not be achieved without the participation of the private sector. The RLSF, as a pragmatic option, could therefore become a more widely used solution to solving the energy deficit challenge in Africa.
The FSBR has an initial capacity of $ 74 million and will protect independent power producers from the risk of delay. payments by public purchasers. This type of guarantee is a common requirement of the banks that finance the projects. Many projects have failed in the past to access funding because this guarantee was not available.
This decision reflects Uganda's commitment to ensuring the viability of small and medium scale renewable energy projects. At the signing ceremony, Matia Kasaija, Minister of Finance, Planning and Economic Development of Uganda commented on the government's commitment to improving conditions for investors in the sector. energy – "Uganda 500 million dollars spent over the last decade to improve the network.With this agreement, we see the RLSF provide a perfect complement to our strategy continues to accelerate the delivery of 39, clean energy to the national grid. "
Uganda is considered an ideal market based on the relatively high number of viable independent energy producers (IPPs). The country also benefited from the GET FiT program, an energy sector initiative run by KfW on behalf of the Ugandan government, which helps countries develop a standardized set of documents for energy projects and a regulatory framework that is conducive to PPIs.
This gives the necessary comfort to developers and lenders to invest in renewable energy projects. GET FiT has been a success in Uganda, attracting 19 IPPs over the last five years
Under the RLSF program, all renewable PPIs that have not reached financial close, as well as new PPIs may request the product.
The RLSF is a tool that can allow more renewable energy projects to get closer financially. For Africa, small and medium-sized projects can be better adapted to the current environment, requiring less funding and can be implemented much more quickly. This could be a model that works in many other African markets and could pave the way for factory expansion or other similar initiatives, "said George Otieno, chief executive officer of the company. ATI
. Minister of Finance, Planning and Economic Development, Irene Nafuna Muloni, Minister of Energy and Mineral Development, Mr. Willy. K. Kiryahika, Managing Director and Chief Executive Officer, Uganda Electricity Transmission Company (UETCL) and George Otieno, Managing Director, African Trade Insurance Agency (ATI).
KfW is one of the largest and most experienced promotional banks in the world. Established in 1948 as an institution under public law, KfW is 80% owned by the Federal Republic of Germany and 20% by the Länder.
KfW Development Bank is Germany's leading development bank and an integral part of KfW. It performs Germany's (CF) financial cooperation with developing countries on behalf of the federal government.
The 600 headquarters staff and 370 specialists from its 68 local offices cooperate with partners around the world. Its aim is to fight against poverty, to guarantee peace, to protect the environment and the climate and to make globalization fair. KfW is a competent and strategic advisor on current development issues.
ATI was founded in 2001 by African states to cover the business and investment risks of companies doing business in Africa. ATI provides guarantees on political risks, surety bonds, credit insurance and political violence and terrorism and sabotage. By the end of 2017, ATI has supported USD 35 billion in trade and investment across Africa in sectors such as agribusiness, energy, exports, housing, infrastructure, mining and telecommunications.
Since 2008, ATI has maintained the "A / Stable" rating for Standard & Poor's Financial Strength and Counterparty Credit.
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