Korea International Cooperation Agency supports renewable energy development in Sub-Saharan Africa
Successful fundraising for responsAbility-managed Technical Assistance facility
Zurich, 11 July 2019 — The Korea International Cooperation Agency (KOICA) and responsAbility Investments AG, an international asset manager headquartered in Switzerland, are teaming up to drive the development of renewable energy generation in Sub-Saharan Africa. KOICA today announced that it has donated USD 1m to a dedicated Technical Assistance facility associated to a responsAbility-managed energy holding that finances, develops and operates renewable energy projects across the continent. The funds will be used to effectively drive the construction of power plants across the continent, thereby actively contributing to SDG #13, Climate Action.
Founded in 2013 and set up as a public-private partnership owned by a series of investors including founding partner KfW, Norfund and the Nordic Development Fund (NDF), the responsAbility-managed renewable energy holding for Sub-Saharan Africa invests in and develops small-scale renewable energy power plants.
To ensure its success, the company is endowed with an associated Technical Assistance (TA) facility. Funded separately from the company, the facility is tasked with building capacity by financing geotechnical, hydrological or feasibility studies and facilitating access to know-how and expertise for local project promoters.
Joining existing donors KfW and NDF, the Korea International Cooperation Agency has donated USD 1 m to this facility, bringing the total amount of funds available to facilitate the implementation of renewable energy projects across the continent to USD 3.2 m.
KOICA President Lee Mikyung declared: “It is critical to provide assistance in responding to the climate change in developing countries through international development and cooperation in order to achieve the Sustainable Development Goal #13 and the goals for the Paris Agreement.”
Speaking on behalf of the responsAbility-managed renewable energy company, Joseph Nganga, Head of Energy Equity Investments, explained: “In Sub-Saharan Africa, there is an abundance of small- to medium-sized energy projects waiting to be developed. To make them financially viable, funding support is needed in the preparation phase to overcome the hurdle of high upfront costs. The TA facility has been a catalyst in bringing a whole number of environmentally friendly smaller-scale projects to fruition, and we look forward to relying on this important support also in future.”
About KOICA (www.koica.go.kr) The Korea International Cooperation Agency (KOICA) was established as a government agency in April 1991m KOICA has played a critical role in Korea’s ODA for developing countries by implementing the government's grant aid and technical cooperation programs. KOICA aims to realise sustainable socio-economic development and the eradication of poverty in developing countries; and contribution to global issues related to international development cooperation to harmonise development efforts with those of the international community.
About responsAbility Investments AG (www.responsability.com) A leading asset manager for impact investments in emerging economies, responsAbility manages USD 3 billion of assets through a range of investment vehicles that provide private debt and private equity to some 540 companies with inclusive business models across 90 countries. Founded in 2003, the company is headquartered in Zurich, Switzerland, and has local offices in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris.
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