The International Solar Alliance (ISA) and Africa50 have signed a landmark term sheet laying out the key terms on which Africa50, the pan-African infrastructure investor and asset manager, will manage and implement the Africa Solar Facility (ASF). 

The term sheet was signed on the sidelines of the Africa Investment Forum Market Days in Rabat, Morocco.

This milestone follows exclusive discussions between the two organisations after the announcement at the International Solar Festival in September, where ISA identified Africa50 as the potential investment manager for the ASF.

The ASF, targeted at $200-million, is being launched by ISA to provide tailormade and cost-effective financing solutions to unlock and mobilise investments in distributed renewable energy projects in Africa.

The parties note that this sector has been historically underserved owing to small ticket sizes and high perceived risk, despite being critical to accelerating timely access to clean energy for millions.

The ASF aims to bridge this gap by mobilising investments and unlocking the full potential of distributed renewable energy solutions in Africa.

“We appreciate the trust the ISA has shown in Africa50 to manage this important facility. Leveraging our expertise in project development and project finance in Africa, we will drive the objectives of this facility and, ultimately, support the continent's energy transition goals.

“This partnership also underscores the objectives of this year’s Africa Investment Forum of leveraging innovative partnerships to scale critical infrastructure for our continent’s growth,” says Africa50 CEO Alain Ebobissé.

The ASF is the first regional facility under the umbrella of ISA’s Global Solar Facility, which is aimed at providing financing to help accelerate deployment of distributed solar projects across various regions. 

“Only 3% of global solar investment in solar energy is reaching Africa. The percentage is even smaller for decentralised renewable energy (DRE). The ASF payment guarantee will provide confidence to investors so they can invest in DRE applications in the continent,” says ISA director-general Dr Ajay Mathur.