overview of financing options for re projects in west...
TRANSCRIPT
“Overview of Financing Options for RE
Projects in West Africa"
Lagos, 23. August 2016
Westwood Hotel, Ikoyi, Lagos
Are the official representatives of the German industry in Ghana and
Nigeria.
We are partnering with the Federal German Ministry for Economics
and Technology (BMWi) abroad and
provide information for German Companies on the Ghanaian and
Nigerian business environment as well as information for Ghanaian
and Nigerian businesses who want to engage themselves in Germany.
The Delegations of German Industries and Commerce (DGIC) in
Lagos, Nigeria and Accra, Ghana
Services provided by DGICs / General business development services:
Advisory services, fact finding missions, address research, market studies,
information on taxes and procedures, B2B meetings, Trade Fairs,
Business Delegations, and many more.
the Dual Vocational Training Partnership with Germany is an additional
program in Nigeria. It assists in scaling skill gaps in technologies involving
manufacturing, construction and commerce.
We also help companies to establish contacts with the German
development cooperation, as there are the Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH and Sequa gGmbH.
The ExperTS Programme supporting DGICs
Target of the ExperTS Programm and posting of ExperTS‘ into Delegations is
to merge German federal external economic promotion with development
cooperation.
Activities
ExperTS establish special
services on renewable energy
and environment and take over a
pioneering role among the
existing chambers in the
countries.
Distribution
Currently 10 ExperTS
are posted in Delegations
world wide.
Renawable Energyand EnergyEfficiency
The ExperTS- Programme Current postings of Integrated ExperTS in the areas of Renable Energy
Energy potential in Nigeria
Business opportunities in Ghana in the RE sector
• Solar PV homes systems projects – small scale for private homes
(200.000 homes government program).
• Solar PV projects – medium to large scale for corporations.
• Solar PV utility sized projects.
• Net Metering will hopefully give another push in the solar PV sector.
• Mini-hydro projects.
• Interest in biogas and biomass power plants. Several are in a stage of
realization.
• Interest in wind power plants but none has been realized in recent years.
• Tidal wave power plant (at the moment only very small but planed for up to
1 GW).
Business opportunities in Nigeria in the RE sector
• Solar PV homes systems projects – small scale for private homes.
• Solar PV projects – medium to large scale for corporations.
• Solar PV utility sized projects.
• Off-grid solar PV and hybrid power plants.
• Potential in biogas and biomass power plants.
• Potential in wind power plants on-shore and off-shore.
General Findings in the Sector
Obstacles entrepreneurs are facing in both countries:
• Non implementation of promised incentives for renewables (reduced
import costs, tax holiday).
• Extensive sales of substandard products and copies of brands.
• Limited human capacity through lack of quality trainings and training
facilities in the country.
• High hurdles and insecure ownership when acquiring land.
• Unclear regulations and changing tariffs making it difficult to calculate
return of investment.
• Clean energy, business is limited since gas supply is mainly restricted to
the shore lines and road infrastructure is not favorable.
• However, the most important need for businesses, customers and
investors is to acquire long-term loans at feasible interest rates.
SEFA Sustainable Energy Fund for Africa
Type of financing Grants and technical support for project
development during project preparation
Amount 1 million USD, evtl. higher
Entitled applicants IPPs, private companies
Requirements Total project investment between 30 – 200 million
USD; min. 30% co-financing required
EU-AITF EU-Africa Infrastructure Trust Fund
Type of financing Technical support via grants
Amount n.a.
Entitled applicants African public and private applicants
Requirements Grants depend on positive loan commitment from
EIB; project must have regional content, poverty
alleviation, economic development or trade impact
EIB European Investment Bank
Type of financing Loans, Mezzanine, Equity, Guaranties and Grants
Amount <25 million EUR via partner banks, >25 million
EUR via direct application
Entitled applicants Private companies
Requirements For loans above 25 million EUR feasibility study
required
AECF Funding Innovation for Business in Africa
Type of financing Loans and grants
Amount <1.5 million USD, zero interest
Entitled applicants Private companies
Requirements Business idea in Africa, innovative, must have
development effects
IDF (FMO) Infrastructure Development Fund
Type of financing Long term loans
Amount <20 million EUR
Entitled applicants Project developers
Requirements General infrastructure
AEF (FMO) Access to Energy Fund
Type of financing Equity participation <20%, loans
Amount Equity <10 million EUR, loans <20 million EUR
Entitled applicants Private companies
Requirements Energy producers
ENGIE ENGIE Rassembleurs d’Energies
Type of financing <40% equity
Amount 100,000 – 1 million EUR
Entitled applicants Private companies
Requirements Economic and social components
EBID ECOWAS Bank for Investment and
Development
Type of financing Loans, long term
Amount 5 – 30 million EUR
Entitled applicants Private companies
Requirements Projects in West Africa, equity requirement of 30%
Gari (Fond Gari) Guarantee Fund for Private Investments in West
Africa
Type of financing Hedging (guarantee) of project risk
Amount 100,000 – 6 million USD (max of 60% of project
value covered)
Entitled applicants Private companies
Requirements Positive loan commitment
Crowd Funding bettervest
Type of financing Loans (Crowd financing)
Amount € 50,000 bis maximal € 2,500,000
Entitled applicants Private Inverstors, SMEs, NGOs, Local
Communities
Requirements Company registered in Germany or Italy (possibly
soon in Nigeria); Active for 3 years
General Observations
Crowd Funding There seem to be a number of newly founded
crowdfunding platforms on the market, however
some of them are still in forming stages, e.g.
TRINE, ecoligo.
Microfinance
Type of financing Short term loans
Amount 2 million to 20 million Naira
Entitled applicants SMEs
Requirements Short term loans 6 to 24 months in monthly rates
beginning with first month
• Our presentation only constitutes an extract of the available funding
opportunities for energy projects.
• A full compilation of funding institutions comprising Ghana, Kenia, Nigeria
and South Africa will be available by the end of the year 2016.
Bärbel Freyer
Head of Energy and Environment
Department
Tel.: +234 (1) 2700746/7
Fax: +234 (1) 2700748
E-Mail: [email protected]
nigeria.ahk.de
Mr. Michael Neulinger
Head of Energy and Environment
Department
Tel.:+233 302 631 681/2/3
Fax:+233 302 631 684
E-Mail: [email protected]
ghana.ahk.de
