Written by: Yunus Kemp
A UK-registered charity and a finance institution have committed $245 million to clean energy projects in sub-Saharan Africa and South Asia.
The Shell Foundation (SF) recently signed a memorandum of understanding with British International Investment (BII), the UK’s development finance institution and impact investor.
The partnership will “support the just and inclusive energy transition in sub-Saharan Africa and South Asia.”
The institutions will provide investment to help address the finance barriers that exist for early to mid-stage businesses.
This would be in sectors aligned with BII’s strategic priorities and SF’s charitable objectives, the two organisations said. These would include “distributed renewable energy, e-mobility and agri-tech, as well as supporting cross-cutting solutions in the areas of climate and gender inclusion.”
It is estimated that 773 million people globally lack access to electricity, mostly in sub-Saharan Africa and Asia.
“Achieving Africa’s energy and climate goals will require more than $190 billion each year from 2026 to 2030, with two-thirds going to clean energy.
“For South Asia to achieve its renewable energy potential, over $410bn is required by 2030.”
British International Investment (BII) and Shell foundation have signed a memorandum of understanding (MoU) to support renewable energy growth in sub-Saharan Africa and South Asia.— Carbon Credit Technology (@CCTokenHQ) April 20, 2023
The agreement aims to finance clean energy start-up companies in these regions. pic.twitter.com/PrTnEsAoIS
Another funding initiative launched. British International Investment and Shell Foundation to invest $245 million— Terje Osmundsen (@OsmundsenTerje) April 16, 2023
in deployment of renewable energy through the financing of start-up companies in Africa and South Asia. Good news. https://t.co/8X7yt359rv
Clean energy sector could provide an income for people in emerging markets
Unlocking more finance is critical to achieving these energy goals, said SF and BII.
Under this partnership, BII and SF said it will “endeavour to make up to $245m financing available by 2026.”
This would be earmarked for private sector projects that support investment into “high-impact sustainable and clean energy solutions in sub-Saharan Africa and South Asia.”
Jonathan Berman, Shell Foundation chief executive officer said: “In the coming decade, millions of people in emerging markets could earn a living income for the first time using clean energy.”
Yasemin Saltuk Lamy, MD and Head of Asset Allocation and Capital Solutions at BII, said the partnership “will create new job opportunities, support resilient economic growth as well as help to close the finance and energy access gaps.”