In 2018, Benin, Burundi, Malawi, Uganda and Zambia made significant progress in de-risking renewable energy projects in their countries

Malawi has joined the likes of Burundi, Benin, Uganda and Zambia in signing on to Regional Liquidity Support Facility (RLSF) thereby offering protection to their Independent Power Producers (IPP) against payment risks.

The RLSF is a joint initiative of the African Trade Insurance Agency (ATI), and KfW with funding from the German Federal Ministry for Economic Cooperation and Development (BMZ). The Facility, targets small and mid-scale renewable energy projects because renewables are generally cheaper, easier to implement, integrate into the national electricity grid and usually have a positive environmental impact once up and running. The facility supports small and medium scale renewable energy Independent Power Producers (from 50 to 100MW) in sub-Saharan Africa.

Renewable energy is a viable alternative and the RLSF aims to provide further incentives to African governments to sign up. By supporting small to medium-sized projects the current energy deficit in Africa can be rapidly reduced at a lower cost with a focus on many small and smart projects.

George Otieno, the CEO of ATI noted “Our initial five partner countries are paving a path for what is possible in the African renewable energy space. By signing onto the RLSF agreement these governments have committed to provide support to IPPs implementing projects in their countries. This sends a powerful message about their will to drive the renewable energy sector in Africa. We are optimistic that other countries across Africa will follow.”

The RLSF product is available to all renewable IPPs in countries that have signed a Memorandum of Understanding and that have not reached financial close, as well as new IPPs.