Camco Secures $107M for REPP 2 Fund to Drive Renewable Energy in Sub-Saharan Africa

Camco, a leading climate and impact fund manager, has achieved a major milestone with the first close of its REPP 2 renewable energy fund, securing $107 million in commitments. The fund is designed to invest in decentralized and small-scale renewable energy projects across Sub-Saharan Africa, addressing the urgent need for clean energy solutions in the region. With a total target of $250 million, REPP 2 aims to close the large investment gap in Africa’s renewable energy sector, which is estimated at $22 billion annually.

The REPP 2 fund has garnered support from several prominent investors, including the Green Climate Fund (GCF), Norfund, FMO, BIO, Ceniarth, and the Renewable Energy Performance Platform (REPP). These partnerships are crucial as they combine public and private funding to create a blended finance vehicle that can effectively tackle the challenges of financing renewable energy projects. Ben Hugues, the director of REPP 2 at Camco, emphasized the importance of investing in businesses that are building a decentralized and reliable energy grid for Africa’s future. He noted that scaling up finance is essential for enabling innovative companies to grow while generating attractive returns and making a meaningful climate impact.

Over its lifetime, the REPP 2 fund aims to support the addition of 330 megawatts of new renewable energy capacity and mitigate over 12.7 million tons of carbon dioxide emissions. The initiative is expected to provide clean energy to more than 7.7 million people across Sub-Saharan Africa, enhancing the resilience of approximately one million beneficiaries. The focus on small-scale projects is particularly vital as many communities in Africa still lack reliable electricity access, hindering economic growth and development.

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The fund will also be supported by a technical assistance facility funded by Norad. This facility aims to accelerate market growth by addressing both financial and non-financial barriers that currently impede project development. By providing technical support, REPP 2 will help local developers navigate challenges and attract further investment into their projects.

Investors have expressed confidence in Camco’s approach to renewable energy financing. Diane Isenberg, founder and managing director of Ceniarth, highlighted the importance of financing reliable electrification solutions for underserved communities in Africa. Tellef Thorleifsson, CEO of Norfund, stated that decentralized and small-scale renewable energy will play a central role in providing the necessary energy access for sustainable growth in African countries.

The REPP 2 fund builds on the legacy of its predecessor, which has already made notable contributions to renewable energy projects throughout Sub-Saharan Africa. With this new funding round, Camco aims to further strengthen its impact on the region’s energy landscape by supporting small independent power producers and innovative last-mile energy delivery solutions.

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Camco’s successful first close for its REPP 2 renewable energy fund marks an important step toward enhancing clean energy access across Sub-Saharan Africa. By leveraging blended finance and focusing on decentralized renewable projects, this initiative not only addresses pressing energy needs but also contributes to global climate goals. As the fund progresses, it holds the potential to transform lives by providing sustainable electricity solutions to millions across the continent while promoting economic growth and environmental sustainability.