The African Development Bank (AfDB) has approved a $100 million fund to finance the Facility for Energy Inclusion (FEI). The financing comes in $50 million of own funds and $50 million in senior convertible loan. It should according to the institution help provide power to about 3 million people in Africa.

FEI is an energy fund established by the AfDB under its New Deal on Energy for Africa program, in partnership with other financial development institutions. It will focus on providing senior and mezzanine debt to off-grid, mini-grid and small scale independent power producers developing projects that cost less than $30 million. Projects illegible to the fund will be selected relatively rapidly by a fund manager who will be appointed by February 2017 among the already six pre-selected candidates.

The provision of the financing by AfDB paves the way for a formal fundraising process for $400 million in additional investment from other financial development institutions, impact investors and commercial banks. The institution has in fact met with British, American, German, Japanese, and South African investors in this framework. A first closing is expected by mid-2017.

Gwladys Johnson