Explorating Partnership Opportunities in The Promotion of Green and Inclusive Finance in East Africa

CLIMATE CHANGE FINANCING
ACTIVITIES IN EAST AFRICA

Prospects for Partnerships in Green and
Inclusive Microfinance Promotion
DECEMBER 31, 2015
HENRY OKETCH
Maarifa Consultants Limited
Nairobi, Kenya
TABLE OF CONTENTS
A.
BACKGROUND ........................................................................................................................................... 2
B.
SURVEY OBJECTIVES AND SCOPE ..................................................................................................... 3

Survey Objectives ........................................................................................................................................ 3
Research Scope .......................................................................................................................................... 3
Social and Economic benefits from green and inclusive finance ......................................................... 4
Building the capacity for green and inclusive finance ............................................................................ 4
C.
THE LITERATURE ...................................................................................................................................... 5

Definition of Key Terms and Concepts ......................................................................................................... 5
Climate Change ........................................................................................................................................... 5
Climate Finance ........................................................................................................................................... 6
Motivation for investment in green and inclusive finance microfinance ............................................... 6
Investment areas or opportunities ............................................................................................................. 7
The benefits of green and inclusive microfinance to the poor............................................................... 7
The value proposition for investments in green and inclusive microfinance ....................................... 8
The GPA Initiative in East and Southern Africa ...................................................................................... 8
D.
DATA AND METHODOLOGY ................................................................................................................... 9

The seven steps to main findings ............................................................................................................ 10
The tools and art of online research ....................................................................................................... 10
E.
MAJOR FINDINGS .................................................................................................................................... 10
F.
POTENTIAL INVESTORS IN GREEN AND INCLUSIVE FINANCE ................................................. 13

Number and composition of green and inclusive finance investors ................................................... 13
Volume of funds in climate finance ......................................................................................................... 14
The Market for GPA and prospects for scale-up................................................................................... 15
G.
CONCLUSION ........................................................................................................................................... 16
APPENDIX ............................................................................................................................................................ 0
List of Green and Inclusive Finance Projects 31/12/2015 ......................................................................... 0
Green and Inclusive Finance Situation in East Africa
Page 1
A.
BACKGROUND
This paper was inspired by one of three requirements expected of trainee consultants under the HivosEnclude Regional Capacity Building Initiative for Green and Inclusive Finance in East and Southern
Africa. Also known as the Green Performance Agenda (GPA), the initiative recognizes the huge
challenges, but also opportunities that climate change presents globally, but most remarkably to Africa.
In this region, more than two-thirds of the population depends on agriculture for their livelihood; ninetyseven per cent of agricultural production is currently rain-fed; and less than four per cent of agricultural
lands are irrigated. The agricultural sector accounts for between 23 per cent and 35 percent of the
economy in all of the five East African countries1. Further still, between 70 per cent and 90 per cent of
Africas population rely on solid biomass for fuel.
In Kenya, for instance, wood fuel accounts for 68.3 per cent of total energy consumption, though it is
the only country in the East African region where the rate of electrification is close to a third (at 29 per
cent) of the population. Low-income households in the region spend as much as between $70 and $110
per year on lighting needs and disposable batteries for torches. One source correctly links harvest
failures and food insecurity arising from climatic factors strongly to incidences of social
destabilization in sub-Saharan Africa2.
Table 1: Key Population Data
Tanzania
Rwanda
236,040
945,203
26,338
580,362
27,834
37.6
49
49.3
49.3
11.8
415
44.4
72
10.2
308
7,353,427
9,362,758
2,410,000
8,763,954
1,548,162
86.7
73.6
91.6
77.8
89.0
Electrification Rate (% of population)
15
24
17
29
3.6
Share of Households in Agriculture

(%)
Population
below
international
poverty line of $1.25 per day (%)
73
80
72
75
89
38
68
63
43
81
Agriculture Share of GDP (%)

Share of population that relies on
solid biomass wood fuel for cooking
(%)
Population without any connection to
electricity (in millions)
25.3
97
26.0
96
33.4
98
29.5
74
39.8
99
32
38
9.5
35
National Burden of Diseases due to

indoor pollution (% of Population)
Source: Adapted from various sources
4.9
4.4
5.8
2.9
5.2
Surface Area
Population (millions)
Population Density
Number of Households
Share of Rural Population (%)
Uganda
Kenya
Burundi
By one estimate3, about four in five people in sub-Saharan Africa (727 million people) currently depend
on solid biomass, mainly fuel wood and charcoal, for cooking. But an estimated 600,000 people in Africa
die each year as a result of indoor household air pollution from wood fuel, half of them children under
the age of five. And in the East African sub-region, more than 75,000 die annually from pneumonia and
chronic obstructive pulmonary disease linked to the inhalation of indoor smoke4.
Between 2005 and 2010 globally, six of the ten countries that experienced net loss of forest cover in the
period were African. During that same period, not a single country in the region experienced a net gain
of forest area5.
In the next two decades, increased temperatures and changes in precipitation are predicted to stress
agricultural and natural systems significantly in the region. It was predicted that by last year, roughly 480
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million people in Africa would be facing water scarcity or stress due to climate change, and receding
water levels. According to another source, even without global warming, high levels of background
poverty, dependence on rainfall, weak infrastructure and limited provision of safety nets will all combine
to make climate change risk a major source of vulnerability for the African population 6 . However,
because they are the most vulnerable and least able to protect themselves, the poor have the most to
gain from increased investments in climate change mitigation and adaptation, e.g., cleaner and more
efficient energy technologies, greater use of organic fertilizer, and harvesting of rain water for microirrigation, etc.
Of the different financial institutions to be found in Africa, it is the smaller, grassroots-based, financial
intermediaries such as Savings and Credit Cooperative Societies (SACCOS) and microfinance
institutions which are the best positioned to deliver climate finance. These institutions already have a
network and familiarity with the areas where the poor people live, as they operate at the household level
at which most climate change mitigation and adaptation must happen. Over the years, the microfinance
industry has evolved into a resilient financial system that successfully delivers products and services to
the poorest segments of the population. It is this particular strength that makes these institutions ideal
partner to promote the widespread implementation of small-scale climate change mitigation and
adaptation measures. Whether acting as agents, or directly by supplying environmentally-friendly
financial services to end-users, microfinance institutions have established scalable and dependable
channels through which investments in climate change mitigation and adaptation could be channeled to
benefit the poor.
B.
SURVEY OBJECTIVES AND SCOPE
SURVEY OBJECTIVES
The paper is based on a survey of current investors in climate finance and their activities in the five
countries of Kenya, Tanzania, Uganda, Rwanda, and Burundi, which area is geographically known as
East Africa. So far there is no perfect definition of Green Microfinance, and in the context of this survey
the term includes any environmentally friendly initiatives implemented by a microfinance institution
(MFI). On the other hand, while the term Green and Inclusive Finance has the same meaning as
Green Microfinance, the latter term applies to other categories of intermediaries, whether regulated or
not regulated, as long as they provide environmentally friendly financial products and services as part
of their regular portfolio. Another source has defined green and inclusive finance as the art and science
of using economic incentives, financial tools, and market mechanisms to achieve desired environmental
outcomes7.Climate Finance is any kind of investment that leads to a reduction in greenhouse gas and
air pollutant emissions, without significantly reducing the production and consumption of non-energy
goods.
Any of the following environmentally friendly initiatives are considered green and inclusive finance if they
are provided as part of a financial intermediaries normal portfolio: the establishment of an environmental
policy; programs to reduce energy consumption within the institution; clients environmental risk
assessment; microcredits for environmentally friendly technologies such as renewable energies or
energy efficiency; microcredits for environmentally friendly activities such as: organic productions,
ecotourism, recycling; and, environmental awareness-raising actions or provision of trainings for
environmental activities, etc.
In addition to collecting information on current investors in climate finance, the survey also enquired
about microfinance institutions that already provide climate-friendly financial services in the five
countries. It looked at the specific green and inclusive financial products that are available in the East
Africa region, uptake of these products and services by the low-income population, primary obstacles
that currently limit uptake of clean and green technologies and the number of green financial
intermediaries in the market.
RESEARCH SCOPE
The survey collected further detailed information on investors in climate finance in the region, for
instance:
What is the ownership, and how are these organized institutionally?

What is their geographical spread and experience in green and inclusive finance?
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Which of the investors are working with (or hoping to work with) microfinance institutions to
deliver green and inclusive products to end-users?
Who are their target beneficiaries, and what particular financial instruments and products do
they offer to their target market?
How much resources have they allocated to their operations, and what are the terms and
conditions for prospective clients?
Which are some of the most notable examples of potential collaboration between microfinance
institutions and the investors in the region? Which of these examples demonstrate opportunities
for scale up and impact?
All this information is important to the scale-up phase of the Hivos-Enclude GPA initiative, as it can
collectively give insight on opportunities for collaboration, highlight where there might be barriers, and
guide on feasible ways in which to engage with the investors.
The urgency of engaging the poor directly in better environmental practices and to build cleaner and
healthier production technologies has resulted into the demand for green and more inclusive financial
system. Briefly, the GPA enables microfinance institutions to establish the link between their financial
services and how the end-user production and consumption activities are likely linked to contribute
positively or negatively to environment and, hence, proactively incorporate essential complementary
climate change mitigation, adaptation, and resilience elements to their services.
SOCIAL AND ECONOMIC BENEFITS FROM GREEN AND INCLUSIVE FINANCE

Hivos and Enclude Solutions are two of the many development partners that are currently engaged in
building the expertise required by microfinance institutions in environmental management and to
contribute effectively to the newly defined Sustainable Development Goals (SDGs). In all, the new
development philosophy aims to achieve an all-inclusive and sustainable low-carbon growth and
development by 2030. Five of the 17 SDGs adopted by the global community in New York City, U.S, on
25 October 2015 chart a radically different development path from the previously market and private
sector driven philosophy8. Among these, of course, is the goal to end poverty in all its forms. The other
five include the goal to:
Ensure availability and sustainable management of clean water and sanitation, SDG No. 6
Ensure access to affordable, reliable, sustainable and modern clean energy for all, this being
SDG No. 7
Take urgent action to combat climate change and its impacts, SDG No. 13
Conserve and sustainably use the oceans, seas, and marine resources for sustainable
development, SDG No. 14
Protect, restore and promote sustainable use of terrestrial ecosystems, SDG No. 15
The new SDGs reflect the belated global realization that deterioration of nature is closely connected to
the consumerism culture of the 200-year old post-industrial revolution society. As Pope Francis puts it
in his encyclical on the environment:
until only recently, the material society didnt see any other meaning in our natural environment,
except what serves for immediate use and consumption Every effort to protect and improve our world
entails profound changes in lifestyles, models of production and consumption, and the established
structures of economic, social, and political power which today governs societies
BUILDING THE CAPACITY FOR GREEN AND INCLUSIVE FINANCE

The work of Hivos and Enclude in developing the GPA toolkit took shape during the World Economic
Forum in Davos, Switzerland, in 2009. But the sustainable environment agenda, or triple bottom line for
microfinance institutions, had been evolving, along with Social Performance interests, for a while since
the early years of microfinance revolution at the turn of the current millennium. Among other concerns,
real or imagined, the microfinance revolution, which was characterized by widespread
commercialization and transformation of not-for profit providers into for-profit entities, coincided with the
entry of profit-motivated commercial banks and private investors into the market segment. Also
happening at the same time was the dramatic reduction in donor funding to the microfinance sector; as
some of the markets evolved rapidly, many others stagnated or declined. Just a few of the microfinance
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markets grew into diversified and mature sector. Together, all these factors inspired growing fears about
mission drift and over-indebtedness. They also occasioned sharp increases in interest rates, gradual
deterioration in customer service quality, and a significant drop in market discipline both among the
microfinance customers and service providers.
During the first phase of the GPA initiative in 2013, Hivos and Enclude designed a smart electronic selfassessment tool for aspiring green and inclusive microfinance institutions. The initial version of this tool
was presented at various global and regional microfinance forums, including a definitive global
conference on social performance management held in Lima Peru in 2013, and has since been
improved and upgraded. The GPA Toolkit provides interested microfinance institutions with insight into
the economic opportunities to be found in going green and how to pursue them. It further enables the
institutions to assess their current situation in relation to internal, external, and benefits from offering
environmentally friendly financial products and services.
In late 2014, HIVOS regional offices, through its network of local consultants and microfinance
institutions, developed a six-month technical assistance program that has since been implemented in
three stages. The original aim of the GPA initiative was to establish a mechanism for promoting the
Green Performance Agenda (GPA) in poor countries. This was to be achieved through a capacity
building process whereby Hivos and Enclude would facilitate the development of a sustainable pool of
local knowledge on strategic environmental management. The process was further to be customized
and embedded to the microfinance sector by engaging already experienced consultants in the sector.
The first step taken by Hivos in implementing the training was by developing the full design and
curriculum, and then recruiting a pool of consultants in the field as trainees for the GPA. In Africa, the
first initial three GPA training sessions were held in the first three quarters of 2014. The week-long
training workshops were held across five countries, and included visits to 27 microfinance partners to
give the participants first-hand experiences with the challenges of rolling out the GPA. The eight GPAtrained consultants later rolled out the course to aspiring MFIs during the last part of the year.
The second phase of training focused on five areas of the GPA; it also progressed in three different
stages, starting with workshops in Kampala, Uganda, and Harare, Zimbabwe for the two clusters of
consultants in East and Southern Africa. This was followed by a two-month long online distance learning
experience, during which time Enclude developed self-study online courses and assignments of one
session once every two weeks, while participants solved and submitted answers to problems after selfstudy once every two weeks. Towards the end of the online sessions, Enclude organized a webinar
during which time they provided feedback on the sessions and engaged participants in discussions the
GPA issues arising from the sessions. During the third session of the training, Hivos and Enclude
engaged participants in working with aspiring microfinance institutions to develop real solutions they
needed to go green. These tools had been identified during the first GPA trainings in the later part of
2014 and were recommendations resulting from MFIs self-assessments. All three 2015 sessions ended
in August with a three-day workshop, after which now Hivos and Enclude are exploring concrete scaleup opportunities for GPA in the same region.
This study is thus designed to provide the two organizations and the local GPA consultants with the
desired market intelligence. It was commissioned as part of the final assignments and initial findings
were part of the discussions during the closing training workshop held at Lake Kariba Dams Cutty Sark
Hotel, Zimbabwe from September 29 to October 2, 2015.
C.
THE LITERATURE
DEFINITION OF KEY T ERMS AND CONCEPTS
CLIMATE CHANGE
Climate Change (CC) is evident in higher temperatures; changes in precipitation or rainfall patters; rising
sea levels and stormy seas, cyclones, etc.; extreme weather events; thick haze, fog, and; the occurrence
of weather-related disasters (e.g., floods, wild fires, extreme storms, heat waves, hurricanes, tornadoes,
and droughts, etc.). The annual losses from natural disasters now average US$250 billion to US$300
billion9.Environmental deterioration results from human activities that destroy habitats and change the
climate. One particular memorable year was 2010; during the year, natural disasters affected more than
200 million, killed nearly 270,000 people and caused $110 billion in damages. A year later, the first
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famine of the new millennium struck parts of the Horn of Africa, as multiple earthquakes, tsunamis and
other natural disasters hit other parts the world. And the World Bank predicts that the frequency and
intensity of disasters will continue to increase over the coming decades 10.A new just published World
Bank study indicates more than 100 million additional people will fall into poverty by 2030" unless action
is taken to stem climate change11. As Steiner (2014)12 notes:
With 94 per cent of agriculture dependent on rainfall, the future impacts of climate changeincluding
increased droughts, flooding, and seal-level risemay reduce crop yields in some parts of Africa by 15
- 20 per cent"
CLIMATE FINANCE
Climate Finance (CF) on the other hand broadly constitutes any source of funding for, either Climate
Mitigation (CM), or Climate Adaptation. By one estimate, extreme weather events had by 2012 taken
the lives of more than 2.5 million people and resulted in $4 trillion in damages globally. In the East Africa
region, climate change related benefits are huge, too (see Table 2 below) if timely and adequate
investments in mitigation and adaptation are made, with the equivalent annual savings per household
per year of $243.8 million in Burundi and $896.4 million in Kenya. According to the latest New Climate
Economy Report, the global market for low-carbon and environmental goods and services is worth more
than $5.5 trillion13.
Table 2: Predicted Benefits of Climate Change Adaptation and Mitigation
Selected indicators
Uganda
Tanzania
Rwanda
Kenya
Burundi
Annual savings per household per year (in $,

millions)
Average household monthly consumption (in $)
823.3
853.2
272.7
896.4
243.8
9.49
7.77
9.41
8.78
11.04
Annual savings in barrels of crude oil equivalent

(number, millions)
Climate change mitigation benefits
4.5
5.8
1.5
6.3
Economic and Energy Benefits
Potential Savings
Tons of Carbon dioxide emissions reduction
annually (in millions)
Number of mid-sized cars off the road (in
thousands)
Environmental, Health and Social Benefits
1.5
2.2
420.2
540.5
Annual savings of per household per year (in 4)
113.9
Number of households with better quality light

6.5
(millions)
Reduction or elimination of fuel-related health
issues, fire hazards and toxic fumes
Source: Climate Vulnerability Monitor, 31 December 2014
2.3
1.6
138.2
576.7
360.4
93.3
112.9
105.3
132.6
8.3
2.2
7.8
1.6
In terms of sectors, most of the strategies and specific activities in response to climate change mitigation
and climate change adaptation fall under energy, environment, and climate change itself. Most of the
activities are aimed at reducing or avoiding greenhouse gas emissions, i.e., addressing loss and
damage. These activities actually represent the climate finance opportunities, i.e., worthwhile
investments that generate benefits in cleaner and cheaper sources of energy; low carbon emissions and
healthier environments; and renewable and more efficient energy sources, etc.
MOTIVATION FOR INVESTMENT IN GREEN AND INCLUSIVE FINANCE MICROFINANCE

With regards to the survey objective of assessing the involvement of microfinance institutions in GPA,
the study relied on annual reports produced by national microfinance networks for a listing of their
membership base and sample. Subsequent internet and web searches to explore whether or not more
microfinance institutions are entering the climate finance market in the region was limited to the largest
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top five per cent of network membership in each of the five countries. In all, a total of 43 leading
microfinance institutions were surveyed online by inspection to assess their involvement in green and
inclusive finance.
In the literature, investors in green and inclusive finance are mostly those that pursue double or triple
bottom lines. As illustrated in the following diagram below, such investors have been classified into three
major clusters based on their primary motivation.
As shown in the diagram, the major investors in green and inclusive finance happen to be those that
pursue both social and environmental objectives, i.e., promoting sustainable land use; promoting
sustainable energy; or biodiversity conservation, etc.
INVESTMENT AREAS OR OPPORTUNITIES

All of the desired investments in enabling the poor and vulnerable population to undertake or engage in
activities that reduce greenhouse gas emissions, recycle wastes/resources, or help the society to adapt
to the negative impact of climate change, are aligned to their livelihoods. These investment opportunities
or projects can be classified into 11 different groups as follows:
Agriculture, e.g., reducing N2O emissions from fertilizer, no-tillage agriculture, and hydroponics,
biomass, combustion of rice husk, biomass, combustion of bagasse, biomass, other unspecified
agric. Residues, etc.)
Agro forestry
Green and sustainable goods and services
Funds for the restoration of wetlands, landfills, and deforestation
Clean and more efficient energy alternatives, e.g., biofuels and agro fuels, solar, wind, etc.
WASH (Water, sanitation, hygiene, etc.
Waste recycling, e.g., waste water treatment, desalination, etc.)
Transport
Unspecified mitigation action
Adaptation, e.g., methane avoidance, manure or livestock gas; methane, avoidance of other
unspecified, and resilience
THE BENEFITS OF GREEN AND INCLUSIVE MICROFINANCE TO THE POOR

Poor households can benefit enormously from the various global efforts aimed at climate change
mitigation and adaptation, provided that they get access to affordable and user friendly environmental
finance14. Similarly, the hundreds of microfinance institutions that exists in Africa can help protect the
poor from climate change risks, even as they collectively eliminate greenhouse gas emissions and other
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environmental pollutions, simply by offering the right environment-friendly financial products and
services. In fact, addressing climate change challenges presents significant economic opportunities for
microfinance institutions 15 . One source even notes that making both urban and rural areas better
habitats can be accelerated through more environment friendly small enterprises in waste treatment
and organized recycling, urban agriculture, conservation related microenterprise development,
transportation, renewable energy, and expanded agricultural activity.
Consider for instance that by 2030, the cost of implementing climate mitigation activities in poor
countries (or investment opportunities) like Kenya would average $140 million to $175 billion per year.
On the other hand, the cost of implementing adaptation (again representing huge untapped investment
opportunities) between 2010 and 2050 is projected to average between $75 million and $100 million per
year. Thus, with appropriately designed climate-smart financial products and services, microfinance
institutions could provide the crucial links needed by the poor in Africa to tap into that huge global pool
of climate finance. Further consider the fact that the poor in East Africa spends an estimated $1.2 billion
per year on inefficient energy sources and practices. This is roughly the same magnitude of income that
could be saved if appropriate investments are made in making cleaner and more efficient energy
available to the sub-regions low-income population. Further note that a minimum investment of $15 per
capita on energy will be needed to meet the SDGs by 2030 in the region.
By engaging Africas low-income and most vulnerable population in climate change mitigation,
adaptation, and resilience projects, promoting green and inclusive microfinance can unlock huge
untapped sustainable opportunities 16 . Unfortunately, despite their good links and closeness to the
poorest, few microfinance institutions in Africa are yet to harness their niche potential to invest in and
enable their primary clients to benefit from the growing green economy17. In fact, despite having grown
phenomenally (by 1,300 per cent) in the last fifteen years18, a recent survey covering 19 sub-Saharan
countries shows that only 30 of the 837 MFIs surveyed in 2014 were offering environmentally-friendly
financial services (Bloomberg, 2015).
THE VALUE PROPOSITION FOR INVESTMENTS IN GREEN AND INCLUSIVE MICROFINANCE

Despite the enormous opportunities presented in climate finance to Africa19, not many microfinance
institutions have ventured into the field. The primary barriers are three:
The African microfinance institutions lack information on the potential and prospects of green
economy, i.e., the potential and opportunities in low-carbon investments.
The majority of microfinance institutions in the region have limited experiences in financing lowcarbon projects.
Most of the African microfinance institutions lack green growth strategies on tapping the market,
even those that have successfully ventured into rural or agricultural finance.
Though a handful of microfinance institutions have begun to address specific aspects of climate change,
including the internal and external need to reduce greenhouse (GHG) emissions and protect the
environment from further pollution, a survey carried out about five years ago in the region and involving
a sample of 33 microfinance institutions established that non had a specific energy portfolio or strategy 20.
Limited involvement of clean technology providers is also due to the lack of affordable technologies that
is within the needs and means of the poor end-users. On the other hand, clean technology firms, the
majority of them small-scale businesses, face many difficulties in securing credit and equity for
investments that focus on the hardly-developed low-income segment of climate finance market.
THE GPA INITIATIVE IN EAST AND SOUTHERN A FRICA

So far, the Hivos Green Performance Agenda (GPA), which was launched in 2009, aims to introduce
microfinance institutions in Asia, Africa, and Latin America to the rapidly evolving opportunities in climate
finance. The GPA toolkit developed by Hivos in collaboration with Enclude has features that facilitate
MFIs self-assessment on environmental issues. The toolkit presents various short- and long-term
investment opportunities for microfinance institutions in the context of green economy. It also presents
15 different do-it-yourself toolsin addition to references and resourcesfor those microfinance
institutions with GPA ambitions. In the last two years, Hivos has trained a team of experts in inclusive
finance on its GPA and Toolkit, seven of them from Africa. With this team, Hivos and Enclude hope to
support a number of microfinance institutions to develop capacity, strategies, and partnerships to
actively enter the climate finance market.
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The few sub-Saharan microfinance institutions that understand GPA have gained the insight indirectly,
either through their relationships with investors that pursue triple bottom lines, or after exposure to Social
Performance Measurement (SPM)21.
(The SPM itself is another initiative that also begun in 2005 at the same time with environmental-friendly
microfinance. Slightly more than a thousand microfinance institutions have undergone social
performance rating, close to two dozen of them from the African region 22.)
Two of the world famous examples of microfinance institutions that have entered the climate finance
market aggressively is BRAC in Bangladesh and Grameen Bank (also another Bangladeshi institution).
Both of these microfinance institutions already have well-established operations in Uganda, Tanzania,
and Kenya (and three other sub-Saharan countries).BRAC offers multiple environmental-friendly
financial products under its Renewable and Alternative Energy Program (solar, wind, bio-gas, etc.). More
than seven years ago, BRAC had already successfully installed 36,830 solar panels, then bringing
renewable energy to 180,000 rural people in Bangladesh by 2008. It also has a Water Sanitation and
Hygiene (WASH) program; Social Forestry; and a paper recycling plant. All three projects run by BRAC
directly contribute to the preservation of Bangladeshs environment 23.
The Grameen experience is however one of the most outstanding examples of microfinance institutions
venturing into climate finance for a triple bottom line. Through its Grameen Shakti program, which it had
established in early 1996, Grameen Banks off-grid solar homes system is the largest and most
ambitious efforts for rural electrification globally. Today more than four million families in Bangladesh
have off-grid distributed solar home systems for cooking, lighting, and small-scale commercial business
needs. Yet another interesting example of the economic opportunities for microfinance institutions in
climate finance market is that of Agroamigo, which happens to be the largest microfinance program in
Brazil24. In Kenya, the K-REP bank has pioneered several successful business models in delivering
community-based piped water systems through microfinance.
D.
DATA AND METHODOLOGY
The online survey progressed in seven stages as indicated in Figure 1 below. The first phase of the
survey was concluded in October 2015, though further additional work continued to end of December
2015.
This survey has been carried out as a continuation of a series of activities and events jointly designed
and organized by Hivos and Enclude to enhance the capacity of their team of trainee consultants in
GPA in Africa. During this second phase of the training, the focus shifted away from enabling the
consultants and microfinance institutions to use the GPA toolkit and diagnose strategies to the actual
formulation of strategy and green and inclusive financial products and services. The second-phase
training thus put emphasis on the transfer of hands-on skills and experience to the trainee consultants
so they can develop and roll-out practical climate finance products and solutions.
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THE SEVEN STEPS TO MAIN FINDINGS

One of the first activities completed during the research was to examine the survey objectives and
simplify them into keywords. At the second step of research, these keywords were then organized into
variables in a matrix format, which then facilitated systematic content analysis and summary of the
sources of information into the desired insight.
During the third step of inquiry, the aim was to construct the keywords into statements that were as close
as possible to the overall survey purpose. Through an iterative process, these statements were then
applied to the World Wide Web search engines to locate existing sources that were most relevant to the
inquiry, i.e., Investors in Climate OR Environmental Finance in East Africa, which the consultant then
tentatively evaluated and pre-selected for detailed analysis from the search lists.
The relevance of a particular source of information was established at the fourth or fifth stage of the
research, depending on whether it is a web page, database, image, or file. However, it was at the sixth
stage of the research that the consultant performed a detailed content analysis of sources and extracted
significant facts and figures for the survey. Annex 1 presents the summary of information on various
investors in climate finance in the region, and provides the basis of recommendation on partnership
opportunities for the extended GPA initiative.
THE TOOLS AND ART OF ONLINE RESEARCH

As already mentioned, the entire investigation of current investors in climate finance in the region relied
on digital records identified from the World Wide Web with the help of keywords 25. A combination of
Hypertext and Natural Language Processing techniques, which are now standardized features of the
web, enabled the listing of relevant items that matched search keywords26. More than 211 different
records were analyzed, though less than 26 have provided most of the required information for the
report.
E.
MAJOR FINDINGS
East Africa is home to 153 million people, of whom nearly two thirds (59 per cent) live in poverty, i.e.,
on less than $1.24 per day. Up to 78 per cent of the population lives in the rural areas. The size of
regional economy after recent rebasing of the GDPs in some of the East African countries is now $121.6
billion. Though one of the regions that have witnessed spectacular economic growth in the last decade
and a half, poverty rates remain stubbornly high.
Page 10
With the exception of Uganda and Kenya, where poverty is now at 38 per cent and 43 per cent, poverty
rates in the three other countries exceed 59 per cent or higher of the population. Between 72 per cent
and 89 per cent of the population still depend on agriculture and livestock for income, while 91 per cent
of households rely on solid biomass wood fuel for cooking. This makes the region one of the most
vulnerable to climate change in the world.
Table 3: Key Data 31/12/2014
Uganda
Tanzania
Rwanda
Kenya
Burundi
EAC
Population (millions)
Population Density
Share of Rural Population (%)
37.6
174
86.7
49.3
49.3
73.6
11.8
415
91.6
44.4
72
77.8
10.2
308
89
153
203.7
84
73
38
80
68
72
63
75
43
89
81
78
59
97
96
98
74
212
78
237
135
311
195
27
510
40
630
7.5
620
44.1
930
3
280
121.6
594
41.6
12.4
38.2
14.5
111.1
32.8
Share of Households in Agriculture (%)

Population below international poverty
line of US$1.25 per day (%)
Share of population that relies on solid
biomass wood fuel for cooking (%)
Average
Electricity
Prices
(in
US$/mWh)
Size of Economy (GDP, in US$ billions)
GNI per capita (US$)
Average Price of electricity (in mWh);
% of GNI per capita
Source: Adapted from various
91
For the few that have access to electricity, the annual costs are very high, averaging slightly more than
a third of the regional GNI per capita27.
In Burundi, the annual cost of connection to the grid is more than the GNI per capita; in Uganda and
Rwanda, it averages 41.6 per cent to 38.2 per cent of the GNI per capita. Not surprisingly, one source
estimates that close to 138 million of the poor households that live on less than $2.50 a day are spending
$10 billion annually on energy-related products, such as charcoal, candles, kerosene and firewood. If
such sums were instead expended in clean and more efficient energy sources, this would be equivalent
to a charge of $10/kWh on lighting; a sum that is roughly twenty times higher than the amount spent by
high-income households with a connection to the grid for their lighting.
Therefore, by not having access to clean energy technologies, the poor in Africa not only spend far too
much on lighting. And so they suffer from indoor population, even as they contribute to the depletion of
their habitat. From the perspective of missed opportunity, and business case for going green, poor
households in Africa could save huge sums of their incomes that currently go into wood fuel, as they
also create many sustainable jobs. Specifically, consider the following estimate by another source 28:
Whereas the poor in Africa spend an equivalent of $10 per kWh on lighting, in the United States of
America and United Kingdom, the average cost for electricity per kWh is $0.12 per kWh and $0.15 kWh.
By simply substituting wood fuel with clean sources of energy, Africa would be creating significant
opportunities for investment and household savings. For the estimated 138 million African households
living on less than $2.50 a day, going green would cut the cost by half and save $5 billion, or $36 per
household. Otherwise, an 80 per cent reduction on cost of lighting would lead to savings of $8 billion
overall and $58 per household
However, going green requires investment in low-carbon sustainable and inclusive development,
including alternative sources of clean energy; smart-agriculture technologies, waste recycling, and other
environment-friendly production and consumption practices. There is no doubt that the region has some
of the most developed economies and financial systems in the region. But it is hardly green at all.
As of 31 December 2013, the region had a total of 11, 905 regulated and supervised financial institutions
(Table 3).
Page 11
Source: The International Monetary Fund (2013), unpublished

The Kenyan financial system is the most developed in the region, accounting for 45.1 per cent of the
institutions and 62 per cent of the industrys total assets. Notwithstanding its size and relatively huge
asset base, however, the regions financial system has not been actively involved in poverty reduction,
and much less in climate finance or environmentally-friendly, inclusive and sustainable growth. In
contrast, the regions relatively young and yet more dynamic microfinance sector has been more
innovative and more inclusive. Yet even this sector has not been as actively involved in environmental
finance as in poverty reduction.
The sector has been especially vibrant in the region since 2007, with the emergence of digital financial
services in Kenya and its rapid spread into the neighboring countries. However, mobile money and
partnerships between mobile phone network operators and financial intermediaries is just one of the
many factors that has speeded the sectors growth. Other contributing factors to the industrys growth
include positive changes in policy and regulation of microfinance in the region. Uganda was the first
country to legislate a regulatory framework for microfinance institutions in 2003, followed by Rwanda in
2004 and Tanzania two years later. Though Kenya and Burundi were behind in regulating microfinance
until 2006, the two countries have witnessed the fastest growth in the number of deposit-taking
microfinance institutions and financial cooperatives.
The introduction of branchless banks, and subsequently agency banking, in the East African sub-region,
starting first with Kenya in 2011, has also had a dramatic impact on the growth of the microfinance sector
in the region. Yet another innovation, which goes back to year 2000, and has similarly given new impetus
to the growth of the microfinance sector in the region, is the promotion of business linkages between
Page 12
formal and informal financial institutions, which is now championed by the MasterCard Foundation and
the Bill and Melinda Gates Foundation.
Excluding the population that is digitally served via the regions mobile phone platform, formal financial
access is, again, highest in Kenya (at 55.5 per cent), then Rwanda (38.1 per cent), and Tanzania (33.2
per cent). In Burundi, just 12.5 per cent of the population is so far financially included, as is less than a
third of the population in Uganda. As significant as this improvement in access over the recent past is,
however, there is still a huge gap in the supply and demand. And affordability remains a huge problem
for the entire financial system. Secondly, despite its size and recent rapid evolution, the microfinance
sector in East Africa is still struggling to scale up outreach.
In particular, the sector has failed to move into the rural areas and agricultural sectors more aggressively,
yet this where poverty is ubiquitous. For not going green, a recently published global survey (The New
Climate Economy Commission, 2015) has a relevant warning to the regions financial system:
Climate risk is an increasing concern. The strong growth performance before the financial crisis
was accompanied by a surge in energy consumption and greenhouse gas (GHG) emissions. [If this
same old development model is carried forward, [it] would generate spiraling emissions and,
ultimately, severe climate damage that would undo the very gains in well-being that we seek
So far very few microfinance institutions in the East Africa region have ventured into climate finance yet.
A Bloomberg survey in 201429 that looked at the number of microfinance institutions with a strategy and
green and inclusive finance portfolio identified only 30 from a huge sample of837 (or 3.6 per cent) in
19sub-Saharan Africa countries. A similar situation has been reported in another recent survey by
Enclude (Geert, 2015).
In East Africa, in contrast to the situation in Latin America, Asia, or Europe, not many traditional investors
in microfinance have entered the green and inclusive microfinance landscape. And not even a dozen of
the many impact investors that have a presence in the region have grasped the opportunity. The notable
exceptions are companies like Centenary Rural and Cooperative Bank in Uganda, Microinsure
Agriculture and Risk Enterprise (ACRE) Limited, Grameen Credit Agricole Microfinance Foundation
(GCAMF), and Participatory Microfinance Group for Africa (MIGA) Network. K-REP Bank, Kenya
Women Finance Bank, and the United Nations Capital Development Fund (UNCDF) 30, which is one of
the multilateral or international development finance institutions, are the other notable exceptions in the
environmental finance landscape.
F.
POTENTIAL INVESTORS IN GREEN AND INCLUSIVE FINANCE
NUMBER AND COMPOSITION OF GREEN AND INCLUSIVE FINANCE INVESTORS

As of 31 December 2014, there were around 4,989 impact investors globally, including 74 pooled funds.
Of this number, a total of 445 investors had interest in either social or environmental projects globally.
While some of these investors focused solely on environment goals (112) or social goals (100), there
were 233 others that focused on both goals.
In sub-Saharan Africa, the number of impact investors was 844, the majority with interests in financial
services (598); those with interest in health (10), clean energy (32), and agriculture (141) were in the
minority. What is perhaps of significance to this survey is that only one of the 112 investors that had
interest solely in environmental projects was active Africa.
Page 13
Not surprisingly, as indicated in Figure 1 below, the majority of the 125 potential investors identified by
this survey are multilateral, bilateral, or national and regional development banks. Venture capital funds
or private equity investors are as few as are CDM and Voluntary Offset Projects or green bonds. So far
domestic banks and private equity investors have played only a minor role in providing climate finance.
Source: Adapted from various
VOLUME OF FUNDS IN CLIMATE FINANCE

To give an indication of the size of the flows, total global investments in clean energy alone was $173.5
billion in the first two six months of 2015. (But just two per cent of the total new investments in renewable
energy since 2006 go to Africa and the bulk of it to South Africa and Kenya31).
Page 14
By category, nearly two-thirds of the investors fall within multilateral sources and intermediaries, notably
multilateral development banks. The second major group of investors in the green landscape globally is
international climate funds, most of them connected to the United Nations Framework Convention on
Climate Change (UNFCCC). The first climate change fund was established at the begging of this new
century. But today the number of climate funds has increased to 50 as of 31 December 2012, with a
total financing resource base of $125 billion. In the period between 2010 and 2012, Africa only received
$13.7 billion in fast-start finance, with most of this going to Nigeria and South Africa.
In Uganda, up to 25 CDMs and Voluntary Offset Projects have been registered. And the first ever green
bond in Africa was issued in the same country in 2011. On the other hand, Kenya has 14 different CDMs
and Voluntary Offset Projects created, but not even a single one is registered as yet.
Other investors in order of the numbers involved are bilateral aid agencies, then development banks,
export credit agencies, and national and regional development banks. In terms of products and services,
the most diversified portfolios are offered by the multilateral sources and intermediaries like the African
Development Bank (AFDB). They offer grants, debt, equity and quasi-equity investments, manage funds
and structured products, and various de-risking instruments and guarantees.
Of the different sources of investments for climate finance, the bulk of funding has gone into clean
energy technologies, majorly on geothermal and hydropower generation. The first green bond in the
region (of $30 million) was issued by the Kakira Sugar Company in Uganda, as it ventured into off-grid
power generation for its own consumption and sale to the national grid.
The stage of development of green market seems to influence the investors landscape, as indicated in
Figure 1 above, with more of the climate funds and multilateral and bilateral sources and intermediaries
dominating the early stages. It further seems that the stage of market development also influences kinds
of available financial products and services. The overall number of organizations with both a presence
and interest in environmental finance in the region is nonetheless many.
As mentioned elsewhere, this survey has identified more than 125 such investors (see Annex 1); though
time did not permit details on all of them to be obtained. The majority of the investors is concentrated at
the high-end of the green market, and available products are targeted at the very early stages where
policy, regulation, and market development is most pressing. As champions of green and inclusive
finance through the Green Performance Agenda, our interest is on investors that have a focus on the
final end-user, typically low-income households, small businesses directly or indirectly involved in
environment-friendly businesses, or off-grid local communities looking to access clean energy
technologies, and those involved in waste recycling, or sustainable water resources.
THE MARKET FOR GPA AND PROSPECTS FOR SCALE -UP

So far the demand is strong and growing rapidly. On one estimate, five per cent of households in SubSaharan Africa now use some form of solar lighting, compared with 1 per cent in 2009.Potential
partnerships in GPA scale-up are further determined by the state of market development. Most of the
investment available for climate finance so far has concentrated on large-scale renewable energy
infrastructure projects, or projects that climate-proof existing infrastructure. However, with the realization
that relatively low numbers of borrowers and high average cost of green microfinance persists, there is
a growing shift towards off-grid distributed energy systems with notable success in Latin America.
Whereas much of the current climate finance investments have gone into helping countries develop
appropriate strategy and regulation and policy in support of the transition to loan carbon development,
there is a new trend towards projects that benefit the excluded population.
Country
Climate Finance Approved
Vulnerability Rank
GHG Emissions Rank
Burundi
$12.0 million
98
Kenya
Rwanda
$33.7 million
$27.6 million
33
13
81
153
Tanzania
Uganda
$18.6 million
$19.2 million
40
15
44
93
Source: Climate Scope 2015
Page 15
In East Africa, clean energy markets are relatively well developed on the supply side, with hundreds of
small energy firms already involved in the market.
Kenya in particular has strong low-carbon value chains, several independent power generators, has
introduced regulation for mini-grids of below 1 MW, off-grid providers, and grid-connected photovoltaic
plants. And it has even introduced net metering for solar installations. The country has further
established a range of biofuel blending requirements, which will support innovation and competition. It
has 14 carbons offset projects (CDMs) and Voluntary Standards projects, though none has been
registered yet. Nonetheless, Kenya has not established a national emissions reduction instruments, and
no national reduction targets. It is also yet to establish a greenhouse gas inventory system.
In Kenya, there are nine microfinance institutions and banks involved in environmentally-friendly lending
in 2014; however there is some growth. In 2012, only seven out of 68 MFIs surveyed in the country then
were involved in environmental-friendly finance. Hivos Eastern and Southern Africa office in Nairobi has
established a Green Pioneer Acceleration Programme, which has plans to catalyze investments in
environmental-friendly projects.
Meanwhile, in Uganda, the government targets to achieve universal access to clean energy by 2035.
To achieve this target, it plans to fast-track some 15 to 20 small renewable energy projects per year by
providing grant-funding for solar energy PV projects under its GET FiT Program (see Annex 1). Its lowcarbon value chain has a complete fast-growing off-grid market.
Tanzania on the other hand has numerous clean energy providers and five out of seven categories of
distributed energy service provider; it has 15 projects of Standardized Small Power Purchase
agreements (SPPAs) and plans to sign additional 60 such projects, each of 15-year duration. According
to Bloomberg, the country also has the most attractive policy framework for small grid-connected and
other distributed renewable energy in sub-Saharan countries32, with the Rural Energy Fund offering
grants for project feasibility studies and customer connections, as well as construction loans.
On the other hand, Rwanda has a vertically integrated power sector. Nonetheless, the country has plans
for small-scale tenders for promoting solar energy installations. It provides grants for household biogas
digesters and subsidized connections to the grid, thereby opening opportunities for growing the
economy through the sustainable use of natural resources.
G.
CONCLUSION
To solve last-yard global problems like enabling poor people become climate change resilient,
partnerships among governments, financial and social providers, and other businesses hold great
potential. So far, global investors have mobilized $331 billion annually in response to the challenges
posed by climate change. Most of this money goes back to the same countries where it has been raised
and a small fraction to other developed economieswith just $34 billion going to poor countries. Due to
lack of effective interface between investors and investment projects, huge segments of Africas
population still lack access to clean sources of energy or resources to mitigate and adapt to climate
change appropriately.
Though well adapted to the financial needs of the poor and having a good network at the local level,
MFIs are unfamiliar with opportunities in the rural clean energy sector and how to develop financial
instruments for this sector. However, new end-user financing mechanisms, such as Pay-As-You-Go
(PAYG); Fee-for-Service; Community-Based, off-grid distributed systems; and Clustering, and Utility
business models, have emerged. These new models hold much promise and potential for replication
and scale-up. The Hivos-GPA Capacity Building Initiative could thus make a big difference by enhancing
the capacity of microfinance institutions for climate finance.
There are many immediate opportunities where Hivos-Enclude project could engage with other investors
in the survey list of 125 to provide climate change mitigation and adaptation to the poor in East Africa.
These include the development of financial products, partnerships, and instruments to end-users for:
Bio-digesters and slaughter house biogas
Mini off-grid (10 KW to 10 MW),or micro off-grid (1 KW to 10 KW), distributed clean energy
technologies, and standalone roof-top solar home systems
Water management and purification
Micro-hydro power projects
Low-cost appropriate technologies for handling flood and drought, and
Page 16
Agricultural bioenergy projects, etc.
There are already many inspiring self-driven examples of successful projects in the region: Village
Energy (Uganda); Agroforestry for Sustainable Land Use and Economic Empowerment (Uganda);
Botanic Treasures (Kenya); Tia Nuru (Tanzania); Busia Waste to Energy (Uganda); and Fast Africa Fruit
Farm and Company (Tanzania), etc. Briefly, the opportunities for GPA in the region are good because
commercial markets for clean off-grid energy systems like solar home systems (SHSs) and renewable
mini-grids are taking off, and will continue to grow in the coming years. As a result, the scale-up of GPA
will help to tap into the available climate finance and provide the low-income population with access to
clean, reliable, modern energy services.
Another favorable condition for GPA scale-up in East Africa is the huge population that is not connected
to the grid. These off-grid populations are typically among the worlds poorest people. A small off-grid
energy system and the appliances it powers represent big improvements in an off-grid households
quality of life. But this requires a large investment of very limited income, and thus the opportunity for
partnerships. The following statements from GPOBA33 give insight into how the partnerships could be
made to work for the benefit of all:
GPOBA backs private financial institutions in communities where poor people are excluded from
basic services because they cannot afford to pay the full cost of user fees, for example, connection fees
to energy-efficient electricity schemes
A local bank would, in this case, receive a subsidy to make available microcredit to communities to help
them purchase renewable energy systems for their homes.
At the same time, we hope to kick-start new markets in rural areas, especially for renewable
technologies, he added. In 2010, GPOBA helped to start 131 output-based aid projects with $3.5 billion
in World Bank funding and $2.8 billion from governments. Almost a third of the money was invested on
the African continent. In Uganda, for instance, a subsidy facilitated finance for a private company that
operates water supply systems. This enabled the company to provide access to clean piped water to
more than eight thousand additional households in rural areas that previously didnt have running
water
Page 17
APPENDIX
LIST OF GREEN AND INCLUSIVE FINANCE PROJECTS 31/12/2015
s/n
PROJECT
/SOURCE
PRESENCE
PROJECT DURATION
Start Date
1
African
Renewable
Energy Fund
(AREF)
Kenya
Financing
Innovation for
Climate
Change Fund
(FICCF)
Kenya
1/1/2015
World Bank
BioCarbon
Fund
Kenya
6/26/2005
AIM
PARTNERS
INVESTMENT
AREAS
AND
INSTRUMENTS
CURRENT
STATUS
BUDGET
CONTACT
Aims
to
provide seed
financing and
advisory
services for
off-grid
connections
African
Development
Bank (AfDB);
Sustainable
Energy
Fund
for
Africa
(SEFA);
Global
Environment
Facility
Construction of
renewable
power plants in
sub-Saharan
Africa,
excl.
south
Africa;
renewable
energy (re) and
energy efficiency
(ee) projects in
Africa
Ongoing; has
reviewed 131
deals for a
potential
renewable
energy capacity
of 4,000 mw.
$200
million
(Initial
seed of $
130
million)
Luka
Buljan,
Investment
Director,
Berkeley Energy, 14 Riverside,
Cavendish
Block,
4th
Floor,
Riverside Drive, Nairobi, Kenya;
Lbuljan@berkeley-energy.com;
+254 204 231 300,+254 700 470 391
DFID Kenya,
The
Kenya
Association
of
Manufacturer
s
(KAM),
Climate Care
(CC) and The
United
Nations
Development
Programme
(UNDP)
Supporting
climate
smart
agriculture
programs
by
giving
grants
and loans
Ongoing
2.6 Million
Finance Innovation for Climate

Change
Fund,
Museum Hill Centre, Museum Hill
Road,
Nairobi,
Kenya,
P.O. Box 59343-00200, City Square,
Nairobi; info@ficcf.com
World Bank
Sequestering
and conserving
greenhouse
gases in forests
and
agroecosystems to
mitigate climate
change
Ongoing
$
280
million
http://www.biocarbonfundisfl.org/contact
Closing Date
2026
2017
The ScalingUp
of
Renewable
Energy
Program for
Africa (SREP)
Kenya;
Uganda
2/1/2008
No term limit
Aims
to
develop
renewable
energy in the
context
of
poverty
reduction
Climate
Investment
Funds (CIF);
SREP
Country
technical
assistance
in
design of large
scale renewable
energy strategy
and
projects;
grants for large
scale
SREPfunded
programs;
renewable
energy
minigrids and standalone solar pave
systems; solar
pv-based
net
metering
with
storage; utilityscale
solar
pv/wind power
generation;
a
technical
assistance
project
(supported
by
the Sustainable
Energy Fund for
Africa (SEFA)
Closed
$386
million;
Kenya
received
$50 million
baanabe@energy.go.og
Page 1
Ecumenical
Development
Cooperative
Society
U.A.
(Oikocredit)
Renewable
Energy Unit
Kenya,
Uganda;
Burundi;
Rwanda,
and
Tanzania
Climate
Change Fund
(ACCF)
Kenya;
Uganda
7/6/2005
No term limit
6/30/2005
No term limit
Oikocredit
finances and
invests
in
microfinance,
social
and
sustainable
enterprises in
low-income
countries,
with a focus
on inclusive
finance and
organizations
along
the
agricultural
value chain;
aims to meet
the growing
demand for
electricity in
underserved
regions in a
way that is
economically
, socially and
foremost
environment
ally
sustainable
Microfinance
Institutions
Provides
debt
capital; project
or
equity
investments;
finance
distributed clean
power
generation
projects, where
the electricity (or
heat)
is
generated at the
location where it
is used
As
at
31
December
2013,
Oikocredit had
608
microfinance
partners,
of
whom
about
130
were
involved
in
green
and
inclusive
microfinance; of
Oikocredit's
partners
involved
in
production and
services
(outside
microfinance),
41% hold a
'green'
classification,
and of those
production and
services
partners, 73%
reported having
an
environmental
policy,
with
35% having at
least one fair
trade
certification
Portfolio of
591
partners; of
the $735
million
outstandin
g,
some
$121
million was
with green
and
inclusive
financial
intermedia
ries
Oikocredit
International
Kawien
Ziedses
des
Plants,
Corporate
Communications
Manager
kziedsesdesplantes@oikocredit.org
+31 (0)6 272 549 04
ADB's
net
income and
Ordinary
Capital
Resources
(OCR);
Regional and
private
sectors
Clean energy,
sustainable
transport
and
low-carbon
urban
development;
reduced
emission from
deforestation
and degradation
and
improved
land
use
management
Ongoing
$ 50 million
Asian
Development
Bank
Headquarters: 6 ADB Avenue,
Mandaluyong
City
1550,
Metro
Manila,
Philippines
+
63
2
632
4444
/ + 63 2 636 2444
Page 2
Power Africa
Initiative
Kenya;
Uganda;
Tanzania;
Rwanda;
Burundi
The
Green
Climate Fund
(GCF)
Kenya;
Rwanda;
Tanzania
10/1/2013
2010,
December
Not Indicated
US
Government;
World Bank;
AfDB;
Government
of Sweden;
European
Union;
African
Union; United
Nations
Sustainable
Energy for All
(SE4All);
more
than
100 private
companies
Small-scale and
off-grid
renewable
energy solutions
Ongoing;
in
Kenya, Kipeto
wind
power
project
in
Kajiado, is the
first wind power
project
to
benefit at $223
million
financing
by
OPIC
$ 1 billion
powerAfrica@usaid.gov
Not Indicated
United
Nations
Framework
Convention
on
Climate
Change
(UNFCCC)
Climate change
mitigation
Ongoing
$ 10 billion
GEF
Secretariat
1818
H
Street,
NW,
Mail
Stop
P4-400
Washington, DC 20433 USA;
Tel: (202) 473-0508; Fax: (202) 5223240/3245;
secretariat@thegef.org
Page 3
Global Village
Energy
Partnership
(GVEP)
Uganda
7/1/2005
10
Sustainable
Energy Fund
for
Africa
(SEFA)
Uganda
12/1/2010
Not Indicated
2015
To
support
smalland
mediumscale
renewable
energy (re)
and energy
efficiency
(ee) projects
in Africa; i.e.,
to fill a critical
gap in the
banks
increasing
activities
within climate
change
mitigation
and
adaptation by
providing
support
directly
to
small
and
medium
scale
entrepreneur
s
in
the
Barclays
Bank Group;
DFID; DGIS;
EU; Garfield
Weston
Foundation;
IDB; OFID;
Sida; USAID;
Vitol
Foundation;
World Bank;
EEP Africa;
Rotary Club;
UN
Foundation;
ENERGIA
Access
to
renewable
energy; climate
change
mitigation
Ongoing
Not
indicated
GVEP- Kenya (Africa Regional

Office); GVEP International Mbaruk
Road,
Off Muchai Drive, Off Ngong Road,
Opposite
Panorama
Court;
P.O.
Box
76580
00508,
Nairobi,
Kenya;
Mobiles: +254 722 508 789/ +254
725
708
842;
Landlines: +254 20 8000 642/ +254
20
2714
165;
East. Africa [at] GVEP international
[dot] org
African
Development
Bank Group;
Denmark;
US; DFID
Grants
to
project
developers/spon
sors; equity and
technical
assistance
through
a
private
equity
fund; grants for
technical
assistance and
capacity
building of public
actors; provision
of
early-stage
and
upstream
support
for
enabling
environment and
project
development-including
for
mini-grids
Closing
$60 million
Contact:
Zach
SEFA
Focal
z.bloomfield@afdb.org
Bloomfield,
Point,
Page 4
renewable
energy and
energy
efficiency
(re/ee)
subsectors
11
GET
FiT
Programme
Uganda
7/5/2005
12
Rwanda
National
Climate and
Environment
Fund
(FONERWA)
Rwanda
7/5/2005
13
Local
Adaptive
Living Facility
(LoCAL)
2020
Aims to fasttrack some

15-20 small
renewable
projects
a
year
by
financing
small grants
for solar pv
projects
Not Indicated
Provides
a
mechanism
to
channel
adaptation
finance to the
local
level;
integrate
climate
change
adaptation
into
local
government
planning and
budgeting;
raise
awareness to
increase
response to
climate
change;
increase the
Norwegian
Embassy
Competitively
allocated grants
for clean energy,
in particular for
on-grid
pv
projects
Ongoing
$57 million;
plus $280
million
Secretariat@getfit-Uganda.org;
postmottak@norad.no
Department
for
International
Development
(DFID)
Climate change
mitigation
Ongoing
325000
Email:
info@fonerwa.org
Tel: (+250) 252 580 769.
Operates
through
a
process called
PerformanceBased Climate
Resilience grant,
which channels
additional
funding in order
to cover costs
associated with
climate change
adaptation
interventions.
Performance is
evaluated
in
terms of the
contribution of
additional
resources to the
improvement of
or
Sophie De Coninck, UNCDF LoCAL

Project Manager
Page 5
long-term
flow
of
adaptation
funds at the
local level
14
CleanStart
Rwanda;
Uganda
7/4/2005
2017
adaptation and
resilience
to
climate change.
ADC, Norad,
Liechtenstein
,
Sida,
UNCDF
Enhancing retail
capabilities
of
microfinance
providers
in
clean
energy
and other related
technologies;
supporting
market
development for
clean
technologies;
providing grants
towards
enhancing
awareness
among
microfinance
providers
and
customers; issue
market-led
grants and loans
to
scale-up
access to clean
energy; supports
the development
of capacity for an
enabling policy
and
business
environment to
expand
microfinance for
clean energy.
Ongoing
$ 26 Million
UN Capital Development Fund

(UNCDF)
Two
UN
Plaza
New
York,
NY
10017
United
States
of
America
Tel:
+1-212-906-6565
Fax:
+1-212-906-6479
Email:
info@uncdf.org
Website: www.uncdf.org
Page 6
15
CTI PFAN
16
Climate
for
Development
in
Africa
(ClimDevAfrica)
Initiative;
ClimDevAfrica Special
Fund (CDSF
or the (Fund)
Tanzania
7/4/2005
5/27/2010
Not Indicated
38539
Aims
to
improve the
provision and
use
of
appropriate
climate
information;
promote
planning for
sustainable
development
in Africa
USAID, CTI,
ICETT,
REEEP,
ECPA, IDRC,
Idea
Reduction
of
GHG emissions;
promotion
of
low-carbon,
sustainable
economic
development;
facilitation
of
transition to a
low-carbon
economy
Ongoing
$ 6.9 billion
East Africa Regional Coordinator:

Bobby
Namiti;
bobby.namiti@ppl-int.com
African Union
Commission
(AUC);
United
Nations
Economic
Commission
for
Africa
(UNECA)
Grant finance for

knowledge
sharing
and
networking on
reliable and high
quality climate
information
in
Africa;
grants
for
capacity
enhancement of
policy
makers
and
policy
support
institutions
to
integrate climate
change
information into
development
programs;
grants for pilot
adaptation
practices
that
demonstrate the
value
of
mainstreaming
climate
information into
development
Ongoing
22.4
million
Technical Department and Task

Manager:
Siham
Mohamedahmed,
NRM Expert, Natural Resources and
Environment Management Division
Tel:
(216)
7110
2259;
Partnerships and Cooperation Unit
Focal
Point:
Khadidida
Diabi,
Principal
Cooperation
Officer,
Tel: (216) 7110 3002
Page 7
17
Low Carbon
Africa Fund
Kenya
Not
Indicated
18
Lighting Rural
Tanzania
(LRTC)
Competition
Kenya
7/1/2005
19
Climate
finance
for
community
well-being
Kenya
7/4/2005
2015
20
Finance
Innovation for
Climate
Change Fund
Kenya
7/5/2005
2017
Not Indicated
Africa Carbon
Credit
Exchange
(ACCE)
Provide
underlying
financing directly
to jump start lowcarbon projects
with
offset
potential
Ongoing
New phase
Netherlands
Government;
Africa
Renewable
Energy
Access
Program
(AFREA)
Scale up of
affordable
lighting
and
electricity
services
and
clean energy
Phase 2
progress
German
Embassy;
GIZ
Climate-smart
agriculture;
forestry; energy;
wildlife; water;
health; tourism;
fisheries
DFID
Climate-smart
agriculture;
scale-up
adaptation and
mitigation using
innovative
financing
instruments
Provides
Proof-ofConcept
(POC) grants
for
earlystage
Kenyan
businesses
targeting
climate
mitigation or
adaptation
technologies
Not
indicated
info@Africacce.com
Telephone
+260 211 238473;
Fax
+260
211
238472;
Postal address
4th Floor,
Godfrey House, Kabelenga Road,
P.O. Box 390035 Lusaka, Zambia;
Street
address
4th
Floor,
Godfrey House
Corner of
Kabelenga and Longolongo Roads,
Lusaka, Zambia
$1 million
Point, z.bloomfield@afdb.org
Ongoing
18m Euro
JKowalzig@oxfam.de
4530 6954
Ongoing
5.35
million
in
tel.
+4930
Page 8
21
PAMIGA
Water
and
Renewable
Energy
Through
Microfinance
Kenya
6/18/2015
2020
22
Sustainable
Energy for All
(SE4All)
Africa Hub
Kenya;
Tanzania
8/1/2015
2030
23
Rwanda GEF
Sustainable
Energy
Development
Program
Uganda
7/1/2005
2013
24
East
Africa
Regional
Clean Energy
Program
(RCEP)
Uganda;
Comoros;
Tanzania
2012,
October
2017, September
Providing
universal
access
to
modern
energy
services;
doubling the
global rate of
improvement
in
energy
efficiency;
and doubling
the share of
renewable
energy in the
global energy
mix.
European
Investment
Bank (EIB)
Affordable and
reliable access
to electricity and
water; services;
sewerage;
energy
Ongoing
African Union
Commission;
NEPAD
Agency;
UNDP;
Governments
;
Support facilities
for
mini-grid
project
preparation;
market mapping
and
development;
competitive
energy planning
for high-impact
opportunities;
business model
innovation;
loans, debt, and
guarantees
finance and risk
management,
grants
for
technical
assistance
in
capacitybuilding
Netherlands
Government,
AFREA
Renewable
energy
Phase 2
progress
USAID
Reduction
of
GHG emissions
in the energy
sector;
expansion
of
regional clean
energy markets
Ongoing
Euro
28
million; of
which Euro
1.5 million
is
for
technical
assistance
in
$300 billion
Dan
Shepard,
Department of Public Information;
+1
212
963
9495;
shepard@un.org;
or
Cynthia
Scharf,
Secretary-Generals
Sustainable
Energy
for
All
initiative;
+1 917 825 1494, scharfc@un.org.
US$3.8
million
Phone: (202) 473-1000, Fax: (202)

477-6391
$ 20 million
Page 9
25
Green
Finance
for
Energy
Efficiency
(EE)
and
Renewable
Energy (RE)
Tanzania
7/3/2005
26
Transforming
the Economy
through
Climate Smart
Agribusiness
(NU-TEC)
Tanzania;
Kenya;
Uganda;
Rwanda
11/1/2014
27
UNEP/BMU:
Seed Capital
Assistance
Facility
(SCAF)
Tanzania;
Kenya;
Rwanda
6/30/2005
28
On Grid Small
Scale
Renewable
Energy
Tanzania;
Uganda;
Rwanda,
Kenya;
Burundi
7/5/2005
2014
Not Indicated
2020
Kenya
Association
of
Manufacturer
s (KAM), EUAfrica
Infrastructure
Trust
Fund
(ITF), Agence
Franaise de
Dveloppem
ent (AFD)
Renewable
energy
DFID
Resilience
to
climate change
United
Nations
Foundation
(GEF);
Inspired
Evolution
Investment
Management
(IEIM)
Enterprise
development
technical
assistance; seed
capital to early
stage
clean
energy
enterprises and
projects; equity
and
debt
placement
DFID
Renewable
energy
55 million
Ongoing
Ongoing
42.2
million
Enquiry@dfid.gov.uk;
tel. +44 (0) 1355843133
$22.5
million
Martin
Cremer;
Senior
Project
Manager;
International Advisory Services;
Phone
+4969154008-375;
Fax +4969154008-670
26,099,9
99
Enquiry@dfid.gov.uk;
tel. +44 (0) 1355843132
Page 10
29
MicroEnergy
Credits
Rwanda;
Uganda
5/1/2011
Not Indicated
Provide
integrated
end-user
finance and
clean
technologies
to
off-grid
rural
lowincome
households
Carbon
purchasers,
e.g.,
CitiGroup;
Bank
of
America;
Merrill Lynch;
The Carbon
Neutral
Company;
EcoSecuritie
s/JP Morgan;
Vodacom
Tanzania;
Safaricom
Kenya; OPIC
has provided
loans
Microcredits for
end
userfinance,
solar
home systems,
and grants for
user-centered
innovations
$15 million
MicroEnergy
Credits;
1201 Alaskan Way Street 200,
Seattle,
WA
98109;
contact@microenergycredits.com;
+1.206.274.6457
http://microenergycredits.com/platfo
rm
Page 11
30
USAID's
Development
Credit
Authority
(DCA)
Global
It
applies
resources
from the us
federal
government
to
improve
environment
al
sustainability;
for instance,
it aims to
connect rural
and
poor
households
and
small
businesses
to the grid; to
apply
its
guarantees
to increase
access
to
finance
for
sees
and
agribusiness
es to support
feed
the
future goals
USAID
in
2014:
Major
assets
included
$768.8m of
approved
credit; 32
guarantee
s;
49
financial
partners;
and
presence
in
18
countries;
It currently
invests $12
million in
Energy in
Tanzania
and
$10
million in
health in
Kenya
U.S. Agency for International

Development
Office
of
Press
Relations
Ronald
Reagan
Building
Washington,
D.C.
20523-0016
Telephone:
202-712-4320
FAX:
202-216-3524
Email:
usaidpressofficers@usaid.gov
Page 12
30
The Food &

Business
Applied
Research
Fund (ARF)
Global
7/6/2005
Not Indicated
Aims
to
facilitating
the
acceleration
of impactful
entrepreneur
ship in base
of
the
pyramid
markets
Fifteen Dutch
Development
Organization
s; GCP-fund;
Science for
Global
Development
of
the
Netherlands
Organization
for Scientific
Research
(NWO), the
Global
Challenges
Programme
and
the
Applied
Research
Fund.
The
two funds are
managed by
NWOWOTRO
(Science for
Global
Development
,
of
the
Netherlands
Organization
for Scientific
Research
(NWO))
Is a knowledge
platform on food
and
nutrition
security for the
low-income
population
,
sustainable and
inclusive
development;
innovative
grants in support
of new ideas,
practices,
or
partnerships that
contributes
to
food security in
Africa
31
Grundfos
LifeLink East
Africa
Global
7/7/2005
Not Indicated
Aims
to
supply clean
water for the
local villages
through the
grundfos
water2life
programme.
Danish Red
Cross; Kenya
Red
Cross
Society
Water2life is an
in-house
grundfos
staff
programme, i.e.,
staff worldwide
collect money to
provide
clean
water in Kenya.
Visiting
Address
Bezuidenhoutseweg
2
2594
AV
The
Hague
The
Netherlands
Postal
address
PO
box
82327
2508
EH
The
Hague
The
Netherlands
Telephone: +31 (0)70 3043 754
E-mail: info@knowledge4food.net
Website: www.knowledge4food.net
Twitter:
@food
platform
Water2life has
installed
two
water systems
to date which
have been paid
for by grundfos
staff. another
five
systems
should
be
installed shortly
Page 13
32
Scaling
Up
the
Energy
and
Environment
Partnership
with Southern
and
East
Africa (EEP-S
& EA)
7/3/2005
33
Climate
Development
and Finance
Facility
(CDFF)
4/1/2015
Not Indicated
Aims
to
promote low
carbon
private sector
development
via
competitive
co- financing
grants
to
viable
projects
focusing on
improving
energy
access
for
poor people,
improving
energy
supply, and
improving
energy
efficiency by
demonstratin
g
new
technologies
Promote
development
and finance
of
climate
mitigation
projects
in
Developing
countries
Ministry
of
Foreign
Affairs (MFA)
of
Finland;
Austrian
Development
Agency
(ADA); DFID
Early
stage
grants
to
leverage capital;
grants to finance
pre-feasibility
studies,
or
prepare
bankable
business plans
So far approved
60 renewable
energy
financing
partnership for
demonstration/
pilot projects; or
financed
feasibility
studies
for
renewable
energy
deployment
that deliberately
target off-grid
communities
27.6
million
FMO;
Phoenix
Infraworks
Provides
technical,
environmental
and social due
diligence
support at an
early-stage;
pooled funds to
unlock capital;
seed-financing
early
stage;
advisory
services
Pilot stage
$150
million to
leverage
$2 billion
Page 14
34
Africa Climate
Change Fund
(ACCF)
4/1/2014
2022
Aims
to
increase
climate
funding
mobilized for
activities that
take account
of
climate
change
in
African
countries
Guarantee and
leverages larger
amounts
of
climate finance
from other funds;
upstream
diagnostics;
provide technical
assistance;
provide grants to
country
governments to
prepare
investment plans
and
climateresilient and lowcarbon projects;
co-finance
climate-resilient
and low-carbon
projects; provide
grants in support
of
research,
innovation, and
knowledge
sharing
and
networking on
matters related
to
climateresilient and lowcarbon
development;
and
provide
grants
for
capacitybuilding
in
climate change
and
green
growth
to
countries
and
stakeholders at
national
and
regional levels
Euro 4,725
million
Florence
Richard,
Task
Manager
and
ACCF
coordinator; Technical Department
Environment and Climate Change
Division
Manager:
Mr.
Kurt
LONSWAY,
k.lonsway@afdb.org
ACCF
Coordinator:
Mrs.
Florence
RICHARD,
f.quintanilha@afdb.org
http://www.worldbank.org/en/topic/cl
imatefinance/overview
Page 15
35
The
Seed
Capital
Assistance
Facility
(SCAF)
11/1/2010
Not Indicated
To
provide
seed
financing to
early stage
clean energy
enterprises
and projects
AFDB;
UNEP;
Frontier
Investment
Management
Frontier
Market
Energy
Carbon Fund;
Inspired
Evolution
Investment
Management
Evolution
One
Fund
(IEIM); GEF;
UN
Foundation
Enterprise
development
support (EDS);
seed
capital
support (SCS);
EDS grants is
provided as a
contingent grant,
requiring that the
cost-shared
activities lead to
corresponding
investments
being taken by
the funds seed
window. it is
delivered in the
form of annual
fees, time limited
to between two
and three years-the typical time
it
takes to
graduate seed
financed
developments
into
full-scale
investments.
SCS line is
designed to help
offset the hurdle
of
higher
perceived risks
and
lower
expected returns
when
dealing
with early stage
clean
energy
project
and
enterprise
developments
$150
million, of
which $100
is for seed
scale
investment
;
SCAF
partner
funds aim
to finance
more than
$2 billion of
clean
energy
infrastructu
re in the
Developin
g
world,
including
$30 million
at the early
seed stage
Eric
Usher
UNEP
EUsher@UNEP.fr
+46 821 2901Youssef Arfaoui
African
Development
Bank
Email
y.arfaoui@AfDB.org
Martin Cremer or Kevin Blanchard
Frankfurt
School
UNEP
Collaborating
Centre
Email
m.cremer@FS.de
or k.blanchard@int.FS.de
Page 16
36
East Africa Scaling-Up

Access
to
Modern
Energy
Services
Kenya
37
Water.Org
Kenya;
Uganda
38
Kenya
Agricultural
Carbon
Project
(KACP)
Kenya
11/1/2006
7/2/1905
2016
Not Indicated
To enable at
last half of the
population to
access
modern
energy
services by
2015, i.e., 9.6
million
households
(approx. 48
million
people),
at
23,000 extra
localities.
East African
country
governments;
UNDP;
UN
Habitat; GIZ;
SIDA; WHO;
EU
Loans
and
grants to scaleup new and
existing
business
models,
leverage
development
finance; grants
in support of
programmatic
activities; grants
in support of
building enabling
environment for
increased clean
and
efficient
energy access
PostBank
Uganda;
FINCA
International;
VAD
Microfinance
in Uganda
Swedish
Cooperative
Centre
viAgroforestry;
World Bank
BioCarbon
Fund
$3.2 billion
Since 2010, the

WaterCredit
initiative
in
Kenya
and
Uganda
has
empowered
almost 115,000
people to obtain
financing from
seven financial
institutions (FIs)
for longterm,
sustainable
water
and
sanitation
solutions
Dr.
N.C.
Weggoro;
Director,
Productive and Social Sectors,
East African Community Secretariat;
Arusha, Tanzania
$2 million
Climate change
adaptation
by
subsistence
smallholder
farmers
Page 17
39
Microinsure
Agriculture
and
Risk
Enterprise
(ACRE)
Limited
Uganda;
Africa-wide
based
on
innovative
proposals
40
Regional
Technical
Assistance for
Energy
Efficiency and
Renewable
Energy
Development
Programme
(RTAEE
&
REDP)
Rwanda
41
Social AlphaBastion Fund
Tanzania
(Africa);
Asia
7/6/2005
Not Indicated
It offers crop
insurance for
smallholders;
was initially
incorporated
as
Kilimo
Salama
Not Indicated
7/2/2005
Not Indicated
Grameen
Credit
Agricole
Microfinance
Foundation
(GCAMF);
Lundin
Foundation;
LGT Venture
Philanthropy;
Global Index
Insurance
Facility
AFD
Provides
debt
and
equity
financing to
profitable and
scalable
ventures
generating a
measurable
and
substantial
impact
on
poverty
reduction and
environment
al
preservation
in LDCs
USAID's
Development
Credit
Authority
(DCA);
Toniic; Swiss
Sustainable
Finance
(SSF);
The Global
Impact
Investing
Network
(GIIN)
Renewable
power
generation, e.g.,
hydroelectricity,
biomass,
and
solar pv; energy
efficiency
improvements,
mainly in the
agribusiness
sector
Willemien
Senior Project Manager
Representative
Phone+254 712 293855
Solar investees
installed
814
home systems,
and sold 6,001
battery kits and
137,487 lights,
thus reducing
C02 emissions
by 208,137 tons
Libois,
Kenia;
Office;
28 AlphaMundi Group
Ltd
Augustinergasse
21CH-8001
ZurichSkype:
im.radjytim
radjy@alphamundi.chwww.alphamu
ndi.ch
Page 18
42
Novastar
Ventures East
Africa
43
Sustainable
Use of Natural
Resources
and
Energy
Finance
(SUNREF
Africa)
Global
Not Indicated
7/4/2005
Scaling
sustainable
and
innovative
SMEs
that
offer market
driven
solutions to
poverty
2014
HivosTriodos Fund
Sanergy
in
Kenya is a
company
makes hygienic
sanitation
accessible,
affordable and
sustainable in
urban slums. It
builds
a
network of highquality toilets
and franchises
them to local
microentrepreneurs
who
now
provide
sanitation
for
over
20,000
slum dwellers a
day. Sanergy
employees
collect
more
than 7.5 metric
tons of waste
from the toilets
daily
and
deliver it to a
central
processing
facility where
the waste is
converted
into...
EU-ITF;
AFD;
Moving on to
second phase;
80
projects
valued at $55
million funded
in
the
first
phase
$55 million
in Phase 1;
$60 million
in Phase 2
Page 19
44
Pilot
Africa
Climate
Technology
Finance
Center
and
Network
(ACTFCN)
45
Green
Pioneer
Acceleration
Programme
(GPAP)
6/27/2015
1/1/2015
42916
Not Indicated
Aims
to
increase
investments
in
homegrown
mitigation
and
adaptation
technologies
as well as
strengthen
the enabling
environment
for
technology
transfer
Seeks
to
support early
stage
enterprises
contributing
innovative
solutions to
environment
al
issues
such
as
climate
change, loss
of
biodiversity
and
degradation
of soils; link
budding
entrepreneur
s to at least
600 sources
of
venture
capital, debt,
and equity
$14.34
million
Impact
Amplifier;
Growth
Africa;
VC4Africa;
Hivos; SEED;
Embark
Energy;
Africege;
GVEP;
DOEN
Foundation
Competitive
grants through a
rigorous, multistage selection
process
to
prepare
11
selected viable
early
stage
businesses
transition from
market proof to
ready
for
investment
stage,
hence
leveraging
additional capital
Leo
Soldaat:
Hivos Senior Advisor for Financial
Services
and
Green
Entrepreneurship; +31 (0) 70 376
5500
Page 20
46
Participatory
Microfinance
Group
for
Africa
(PAMIGA)
Network
47
U.S.
Africa
Clean Energy
Finance
(ACEF)
7/1/2014
Not Indicated
To increase
access
to
finance
for
the purchase
of affordable
renewable
energy
systems and
investments
in productive
water
resources
OPIC;
The
Calvert Social
Investment
Foundation
(Calvert
Foundation);
Swiss
Development
and
Cooperation
Agency
(SDC)
Microfinance
institutions
Mathieu
Merceret:
PFSA Chief Investment Officer
Aims
to
catalyze
much needed
private sector
investment in
clean energy
projects
in
Africa
by
providing
support
for
early stage
project
development
costs
OPIC; Power
Africa; U.S.
Trade
and
Development
Agency; U.S.
State
Department;
U.S. Agency
for
International
Development
Provides
U.S.
dollars,
fixed
rate, long-term
financing
through
direct
loans or loan
guaranties up to
$250 million with
tenors extending
up to 20 for early
stage
project
preparation
support
for
renewable
energy projects
get
off
the
ground.
Engineering
costs associated
with
project
design;
technology
assessment,
and
overall
feasibility
studies;
legal
costs
for
preparation
of
documentation
related
to
financing
agreements;
consulting costs
for
the
preparation
of
environmental
1100 New York Avenue, NW

Washington,
D.C.
20527;
ACEF inquiries: acef@opic.gov;
Info@opic.gov
Page 21
and
social
impact studies;
third-party costs
associated with
physical
and
technical
analysis
of
renewable
resources
48
Enhancing
Capacity for
Low Emission
Development
Strategies
Program
Facilitate
knowledge
sharing and
networking
on climatesmart
agriculture
U.S.
Department
of State; FAO
Grants
to
finance
strengthening of
both
technical
and
policy
capabilities
Participants
from
30
counties, five
universities,
two
forestry
research
institutes, and
10
local
agricultural and
livestock
research
organizations
trained
on
climate-smart
agriculture;
manual
developed;
linkages
with
two land grant
us universities
established
Page 22
49
Climate
Services for
Resilient
Development
50
MicroBuild
LLC,
Delaware,
USA
51
Energy Sector
Grants
Program
52
Renewable
Energy
Microfinance
and
Microenterpris
e
Program
(REMMP)
7/7/2005
Not Indicated
I,
USAID
(leveraging
NOAA,
NASA, and
other
U.S.
agencies);
UK
Government
(Department
for
International
Development
, and UK Met
Office); InterAmerican
Development
Bank; Asian
Development
Bank;
Esri,
Google;
American
Red Cross;
and
Skoll
Global
Threats Fund
$10 million
USAID;
$24 million
OPIC; Habitat
for Humanity
International,
Inc. (HFHI)
$120
million
Kenya;
Uganda;
Tanzania
Aims
to
increase
access
to
finance
for
end users of
clean energy
services so
as to improve
livelihoods
and quality of
life
among
these target
recipients.
Provides earlystage seedingfinance

in
support of pilot
and scale-up of
several business
models
for
sustainable
energy,
e.g.,
microfinance,
remittances,
asset
finance,
crowd-funding,
Page 23
and pay as you

go mechanisms
53
Root Capital
Kenya
54
Renewable
Energy
Microfinance
and
Microenterpris
e
Program
(REMMP)
Kenya
55
Climate
Innovation
Center Kenya
(KCIC
Kenya;
Uganda;
Tanzania;
Rwanda
56
Spark Fund
Kenya;
Tanzania
57
Energizing
Development
(EnDEV)
Kenya;
Tanzania
58
Access
Energy
Kenya;
Tanzania
to
Sustainable
agroforestry;
clean technology
for agriculture
USAID
Household and
communityscale
clean
technologies,
e.g., solar home
systems, cook
stoves and micro
grids
Community
mobilization
http://www.gshakti.org/index.php
Provides
funding
for
high-potential
cook
stove
businesses in
Kenya
to
improve their
technical,
product
design and
manufacturin
g
capacity
and practices
7/6/2005
2018
responsibility;
Shell
Foundation;
O access to
finance,
financier
introductions
O
training,
knowledge
exchange
events,
and
awarenessraising
responsAbility Investments AG;

Ulli
Janett,
Media
Relations;
Telephone: +41 44 250 67 15;
ulli.janett@responsAbility.com
Page 24
59
The
UNEP/BMU
National
Climate
Finance
Institutions
Support
Programme
Uganda;
Rwanda;
South
Sudan
Technical
assistance
to
countries;
knowledge
sharing
and
networking
60
Clean
Development
Mechanism of
the
Kyoto
Protocol
Tanzania
market
intelligence
knowledge
products
61
Grameen
Credit
Agricole
Microfinance
Foundation
(GCAMF)
Tanzania,
Kenya
62
New Deal for

Energy
in
Africa (NDEA)
Global
Lighting and
Energy
Access
Partnership
(Global LEAP)
Rwanda
64
EU-Africa
Infrastructure
Trust
Fund
(EU-IFTF)
East Africa
65
Global
Geothermal
Energy
Development
Plan Initiative
East Africa
66
Environmenta
l Credit Lines
in East Africa
East Africa
63
East Africa
Carola
Menzel;
Senior
Project
Manager;
International Advisory Services;
Phone
+49
69
154008614;
Fax +49 69 154008-670
6/30/2005
$55 billion
7/2/2005
2017
$66 m
Aims
to
advance the
use
of
geothermal
power
in
thirteen
countries
Page 25
67
The
Ignite
Project
East Africa
Aims to install
off-grid
technology
through
a
pre-paid
system that
can
power
four
lights,
radios
and
televisions,
and charge
cell phones
Private
companies;
government;
philanthropic
agencies
68
Village Capital
FinTech
for
Agriculture:
East
Africa
2015
Africa
69
Geothermal
Risk
Mitigation
Facility
for
Eastern Africa
70
Green MiniGrid Regional

Facility
for
Africa
DFID
GBP
million
71
East
Africa
Loan
Guaranty
Facility
(EALGF)
OPIC; Global
Communities
$59 million
MasterCard
Foundation;
DOEN
Foundation;
Duncan
Goldie-Scot
6/27/2005
Lia
Mayka
lia.mayka@vilcap.com.
AUT,
EC,
FIN,
FR,
GER,
NL,
SWE; hosted
by GIZ
10
Page 26
at
72
Envirofit
International,
Inc.
73
Feed
Future
74
U.S. Global
Climate
Change
Initiative
(GCCI)
75
Access Africa
Fund,
LLC
(AAF)
the
Aims
to
capitalize
growth and
expansion of
Environfit, a
leading
manufacturer
of clean cook
stoves that
reduce
pollution and
energy
dependence
while yielding
health,
environment
al
and
economic
improvement
s
Kenya;
Uganda
OPIC
$9 million
U.S. Global
Climate
Change
Initiative
Aims to foster
low-carbon
growth, curb
emissions
from
deforestation
and promote
sustainable,
resilient
societies
USAID; U.S.
State
Department;
U.S. Treasury
MicroVest;
OPIC; CARE
USA
On
capital
lending
$28 million;
to increase
to
$50
million
Page 27
76
The Frankfurt
School
UNEP
Collaborating
Centre
for
Climate
&
Sustainable
Energy
Finance
(Centre)
77
Global Index
Insurance
Facility
78
Strengthening
Adaptation
and
Resilience to
Climate
Change
in
Kenya
Plus
(StARCK+)
Is to mobilize
significantly
increased
levels
of
sustainable
energy and
climate
finance,
bridging the
public-private
sector
gap
and thereby
contributing
to
the
development
of a Global
green
economy;
aims
to
catalyze
private sector
capital flow
towards
investments
in
sustainable
energy and
climate
change
mitigation
and
adaptation.
Japan; The
Netherlands;
EU
Kenya
UKAid
(International
Climate
Fund)
BSP 28.1
million
Page 28
79
EAC Carbon
Credit
Exchange
Platform
80
EAC Centre
for
Renewable
Energy and
Energy
Efficiency(EACREEE)
Aims
to
increase
Africas
participation
in the global
carbon
markets
Africa Carbon Credit Exchange4th

Floor, Godfrey HouseKabelenga
RoadPO
Box
390035Lusaka,
Zambia; Phone number +260 211
238473; http://www.africacce.com
United
Nations
Industrial
Development
Organisation;
Agencia
Espaola de
Cooperacin
Internacional
para
el
Desarrollo;
Austrian
Development
Cooperation
(ADC);
EU
Partnership
Dialogue
Facility;
United States
Agency
for
International
Development
;
Global
Environment
al
Facility
(GEF)
info@eacreee.org
www.eacreee.org
Achada
Santo
Antonio
Electra
Building,
2nd
floor
C.P. 288, Praia, Cape Verde
Tel: +238 2604630, +238 2624608
Fax:
+238
2624614
E-mail:
info@ecreee.org
Skype: info-ecreee
Page 29
81
African
Enterprise
Challenge
Fund (AECF)
Its purpose is
to
improve
incomes of
smallholder
farmers and
the rural poor
82
Forest
Investment
Program (FIP)
Supports
developing
countries
efforts
to
reduce
emissions
from
deforestation
and
forest
degradation
and promote
sustainable
forest
management
and
enhancemen
t of forest
carbon
stocks
(REDD+)
The
governments
of Australia;
Denmark;
Netherlands;
Sweden;
United
Kingdom;
The
International
Fund
for
Agricultural
Development
(IFAD)
The
Fund
awards grants
and repayable
grants to private
sector
companies
to
support
innovative
business ideas
in
agriculture,
agribusiness,
renewable
energy,
adaptation
to
climate change
and access to
information and
financial
services
$244
million
KPMG
10th Floor, ABC Towers, ABC Place
Waiyaki Way, Nairobi, Kenya
P O Box 13459-00100 GPO
Nairobi,
Kenya
Tel:
+254(20)269
9137/8/9
Web: www.aecfafrica.org
$785
million
Abdoulaye Dagamaissa Manager;

a.dagamaissa@AfDB.org; Gareth
Phillips Chief Climate and green
Growth Officer g.phillips@AfDB.org;
Kurt
Lonsway
Manager
k.lonsway@AfDB.org;
Leandro
Azevedo CIF Private Sector and
Finance
Consultant
l.azevedo@AfDB.org;
Olagoke
Oladapo
Chief
Agricultural
Economist o.oladapo@AfDB.org
Page 30
83
African
Carbon
Support
Programme
(ACSP)
11/4/2014
84
African Water
Facility (AWF)
85
Partnership
for Action on
Green
Economy
(PAGE)
86
Acces
Burundi
2013
87
Least
Developed
Countries
Fund (LDCF)
Burundi;
Rwanda
2010
Is
geared
toward
assisting
Bank clients
in
regional
member
countries to
access
carbon
finance
in
order
to
ensure
the
commercial
viability
of
their
investments
Immeuble
Zahrabed
Avenue du Dollar, Les Berges Du
Lac II, Tunis 1053, Tunisia
Tel: (+216) 71103900/71103930
Fax: (+216) 71194523
Provides grants
for
Project
Preparation;
Water
Governance and
Water
Knowledge;
supporting
projects
designed
to
increase water,
energy and food
security
2018
Rehabilitatio
n
and
reconstructio
n of areas
damaged by
floods
in
2014
World Bank;
EU;
AfDB;
Government
of Burundi
To enhance
climate risk
management
and
adaptation
GEF; UNIDO;
AfDB; UNDP;
UNEP
Over its first six

years
of
operation the
AWF
developed
a
portfolio
of
grants covering
84 projects in
51
countries
including
Africas
most
vulnerable
states.
Ongoing
africanwaterfacility@afdb.org
$25 million
$15.71
million
Page 31
88
Climate
Change
Adaptation
Project
for
Water
and
Soil
Resources
Protection
Burundi
2013
2018
89
Pitch and Bid
Burundi;
Rwanda;
Kenya;
Uganda
2015
2017
90
SPWA-CC
Energy
Efficiency
Project
Burundi
$10 million
Integrated
water
resources
management
(IWRM);
Supports
ClimateSmart
agriculture;
watershed
protection;
droughtresistant
seed
varieties;
Access
to
smallholder
credit;
Sustainable
conservation
in semi-arid
areas;
Strengthened
climate
change hot
spots;
Farmers
adaptive
capacity
Netherlands
Ministry
of
Foreign
Affairs
Euro 52.26
million
$1.82
million
Page 32
91
Fund
for
Environment
and Climate
Change
(FONERWA)
Rwanda
6/1/2013
British
International
Climate Fund
(ICF)
92
Reducing
Vulnerability
to
Climate
Change
Rwanda
2013
93
Alliance for a
Green
Revolution in
Africa
Rwanda
94
Global
Climate
Change
Alliance
(GCCA)
Rwanda;
Uganda
EU
$5.72
million
95
Adaptation for
Smallholder
Agriculture
Programme
(ASAP)
Rwanda;
Uganda
UNEP
$7 million
96
Forest Carbon
Partnership
Facility
(FCPF)
Burundi;
Kenya;
Uganda
Community
Based
Adaptation
risk
reduction;
land
use;
IWRM;
ClimateSmart
agriculture
2013
Conservation
and sustainable
natural resource
management;
R&D, technology
transfer
and
implementation;
Environment
and
climate
change
mainstreaming;
Environmental
impact
assessment
monitoring and
enforcement
2018
Up
to
700
applications
received in the
first round of
call
for
proposals
BSP 22.5
million
$10 million
Africa
Rice
Centre; Red
Cross/Red
Crescent
Climate
Centre
programs
IBRD
Readiness
grants
Page 33
97
Low Emission
Capacity
Building
(LECB)
Programme
Kenya
2015
Technical
Assistance
for policy and
institutional
development
EU;
Germany;
AusAID
98
Adapting
to
Climate
Change
in
Arid
and
Semi-Arid
Lands
(KACCAL) in
Kenya
Kenya
2013
2017
To facilitate
adaptation
through
grants
for
capacity
development;
policies and
programs
adjustment;
grants
for
pilot coping
mechanisms
for
smallholder
farmers and
pastoralists
Special
Climate
Change Fund
(SCCF);
World Bank
99
Sustainable
Environment
and
Restoration
Programme
(SERP)
Kenya
2014
2018
100
Adaptation
Learning
Programme
for Africa
Kenya;
Tanzania;
Uganda;
Burundi;
Rwanda
2015
Aims
to
increase the
capacity
of
vulnerable
households
in
SubSaharan
Africa
to
adapt
to
climate
variability
and change
$6.79
million
Kenya Red
Cross
Society;
International
Federation of
Red
Cross
and
Red
Crescent
Societies
(IFRC)
DFID;
The
Ministry
of
Foreign
Affairs
of
Denmark;
The Ministry
of
Foreign
Affairs
of
Finland; The
Austrian
Development
Cooperation
Page 34
101
The Climate &

Development
Knowledge
Network
(CDKN)
Kenya;
Tanzania;
Uganda;
Burundi;
Rwanda
102
2SCALE
103
Building
Resilience To
Climate
Change
&
Adaptive
Capacity Of
Vulnerable
Communities
Kenya
104
Sustainable
Environment
and Carbon
Uganda
2014
2015
Aims
to
provide
training and
advisory
services
to
governments
on
climate
change
Green
Climate Fund
(GCF); DFID;
Netherlands
Ministry
of
Foreign
Affairs
2012
2017
Aims
to
improve rural
livelihoods
and food and
nutrition
security
in
Africa
by
creating
partnerships
to
enable
farmers and
entrepreneur
s to grow
together
in
their
agribusiness
Netherlands
Ministry
of
Foreign
Affairs;
International
Fertilizer
Development
Center
(IFDC); BoP
Innovation
Center
(BoPInc.);
International
Centre
for
development
oriented
Research in
Agriculture
(ICRA)
Adaptation
Fund
World Bank
Provides
research
and
technical
assistance
to
developing
countries
to
help address the
challenges
posed
by
climate
change
is
executing
many climate
relevant
projects in the
East
Africa
region:
Supported the
development of
FONRWA
in
Rwanda;
Testing
synergies
in
distributed
renewable
village power in
Africa
$10 million
$84 million
Page 35
Finance
(SECF)
105
Green
Investment
Bank (GIB)
106
Africa
Renewable
Energy
and
Access
program
(AFREA)
Department
of Energy and
Climate
Change
(DECC);
Department
for
International
Development
(DfID);
International
Climate Fund
(ICF)
2009
Is designed
to
help
expand
access
to
modern
energy
services by
improving
service
delivery and
scaling
up
innovations
in electricity,
lighting, and
cooking
The
Clean
Energy
Investment
Framework
Multi-Donor
Trust
Fund
(CEIF-MDTF)
;
Energy
Sector
Management
Assistance
Program
(ESMAP);
German
Technical
Cooperation
(GTZ); The
Forum
of
Energy
Ministers of
Africa
(FEMA); The
AfricaEurope
Energy
Partnership
(AEEP);
EUEI
Partnership
Dialogue
Facility; EUAfrica
New mandate
Improving
the
pace,
effectiveness,
and efficiency of
extending
the
grid
to
communities
without access;
creating
enabling
environments
and markets for
new
technologies
;
and
finding
promising
avenues
for
meeting
the
needs
for
modern energy
services using
renewable
sources
BSP 200
million
During
the
projects fouryear
period,
household
connections
were
tripled,
increasing from
100,000
to
390,000 as of
December
2013
Page 36
Infrastructure
Trust Fund
107
REACT
(Renewable
Energy and
Adaptation to
Climate
Technologies)
Kenya
Aims
to
catalyze
private sector
investment
and
innovation in
low
cost,
clean energy
and climate
change
technologies
AECF Africa
Provides grants;
interest
free
loans
to
businesses
to
implement
innovative,
commercially
viable,
high
impact projects
in rural Africa
The Africa Enterprise Challenge

Fund
10th Floor, ABC Towers, ABC Place
Waiyaki Way, Nairobi, Kenya
P O Box 13459-00100 GPO
Nairobi
Kenya
Telephone: +254 20 269 9137/8/9
Website:
www.aecfafrica.org
Email: info@aecfafrica.org
Page 37
108
EU
Energy
Initiative
Partnership
Dialogue
Facility (EUEI
PDF)
The
EUEI
PDF is a
flexible
instrument
of the EU
Energy
Initiative
(EUEI)
supporting
the creation
of
an
enabling
environment
for
investments
in
sustainable
energy
markets
across
Africa,
Southeast
Asia, Latin
America and
the Pacific
National
Competitiven
ess Council
of
Nigeria;
SolarPower
Europe;
European
Wind Energy
Association;
European
Biomass
Association;
EUROCHAM
BRES;
Alliance for
Rural
Electrification
EU Energy Initiative Partnership

Dialogue Facility (EUEI PDF)
c/o Deutsche Gesellschaft fr
Internationale
Zusammenarbeit
(GIZ)
GmbH
PO
Box
5180
65726
Eschborn
Germany
Page 38
109
Africa-EU
Renewable
Energy
Cooperation
Programme
(RECP)
Supports the
development
of markets for
renewable
energy
in
Africa;
catalyzing
the
development
of
African
renewable
energy
markets
Long- and shortterm

advisory
services
for
policy
and
regulatory
frameworks (e.g.
the
Mini-grid Policy
Toolkit, or the
regional project
with SADC /
RERA);
Capacity
building for Rural
Electrification
Agencies;
Development of
market
information
products;
Identification of
investment
opportunities
through a project
scouting;
Helping projects
find
business
partners through
match making
events; Advisory
in
early-stage
project
preparation;
Supporting
projects
in
identifying and
accessing
relevant sources
of
finance;
Building
local
skills
through
TVET and higher
education
support
c/o Deutsche Gesellschaft fr

Internationale
Zusammenarbeit
(GIZ)
GmbH
P.O.Box
5180
65726
Eschborn,
Germany
recp@euei-pdf.org
Page 39
110
African
Association
for
Rural
Electrification
(CLUB-ER)
Kenya;
Uganda;
Burundi;
Rwanda;
Tanzania
111
Green MiniGrid (GMG)

Africa Market
Development
Programme
and
Country
Packages
112
Biomass
Energy
Initiative
(BEIA)
Africa
for
2002
Aims
at
strengthenin
g capacities
in the field of
rural
electrification
;
facilitate
PPP, provide
up-to-date
information
on
technologies
and
knowhow, improve
financial
sustainability
of the CLUBER
Associated
Members
EDF
(France);
SchneiderElectric
(France); GIZ
(Germany);
ABC
Contracting
(Belgium);
MichaudExport(Franc
e);
Sunna
Design
(France);
Nexans
(France); IED
(France)
Kenya;
Uganda;
Burundi;
Rwanda;
Tanzania
Removing or
reducing
market
barriers and
strengthenin
g
the
ecosystem
for
the
scaling-up
of
GMGs
investments
in
SubSaharan
Africa
Sustainable
Energy Fund
for
Africa
(SEFA);
SE4All Africa
Hub
Uganda;
Kenya;
Rwanda;
Tanzania
Aaims to test
promising
and scalable
biomass
energy
building
blocks to be
incorporated
in
future
Banks
operations.
The Center
for Research
in Energy and
Energy
Conservation
(CREEC);
The
World
Bank Group;
Winrock
International;
Berkeley Air;
PATH
Min-grids was
one of the focus
in the past three
years; trainings
on
Mini-grids
and on PVDiesel hybrid
systems have
been
conducted
secretariat@club-er.org
Provides NGOs
and
private
organizations
with grants to
implement nine
biomass
pilot
projects
Page 40
113
Africa Clean
Cooking
Energy
Solutions
(ACCES)
Kenya;
Tanzania;
Rwanda;
Uganda
114
Renewable
energy
microfinance
and
small
enterprise
program
(REMMP)
USAIDs
Renewable
Energy
Microfinanc
e
and
Microenterp
rise
Program
(REMMP) is
designed to
improve
access
to
modern
energy
services in
underserved
communitie
s, while at
the
same
time helping
USAID
partners
reduce
carbon
emissions.
2010
Aims
to
support the
scale-up
clean
cooking and
fuel
technologies
through
a
consultative,
integrated,
enterprisebased
approach to
regional
development
To improve
access
to
modern
energy
services
in
underserved
communities,
enabling
USAID
partners
reduce
carbon
emissions;
increase the
availability of
consumer
financing for
clean energy
services and
products,i.e.,
for the poor to
gain access
to livelihoodenhancing
and
lifeimproving
technologies
while
mitigating
The
World
Banks Africa
Energy
Group
(AFTEG);
The Energy
Sector
Management
Assistance
Program
(ESMAP);
Global
Alliance for
Clean Cook
stoves (the
Alliance);
Sustainable
Energy For
All (SEFA)
Badhan,
Indian
Grameen
Services,
Friends
of
Womens
World
BankingIndia, Milaap,
Simpa
Networks,
Sogexpress,
Solar Now,
Grameen
Koota,
Mahashakti
Foundation
Promotion
of
improved
biomass 10,000
top lit up draft
stoves
in
Uganda project;
Tanzania
agricultural
waste
to
charcoal;
promotion
of
charcoal
producers
organizations in
Rwanda; Kenya
rural biodiesel
project
Page 41
climate
change
115
African Centre
for a Green
Economy
(AFRICEGE)
Africege is
an
independent
non-profit
think
tank
and social
innovation
hub, working
in East &
Southern
Africa
to
promote the
transition to
new
economy.
Aims
to
reduce
the
vulnerability
of Burundis
rural
population to
the negative
impacts
of
climate
change; Aims
to
promote
the transition
to
new
economy in
East
and
Southern
Africa
GIZ; BMZ
Telephone: +27 (0) 21 713 4390

Email:
info@africege.org
Physical
Address
South
Africa
office
Suit 5B, Block B, Tokai Village
Centre
Cnr
Vans
&
Tokai
Road
Tokai,
Cape
Town,
7945
Postal
Address
P.o. Box 30178, Tokai 7966
Cape Town, South Africa
Page 42
116
Energy and
Environment
Partnership in
Southern and
East
Africa
(EEP-S&EA)
Burundi;
Tanzania;
Kenya;
Rwanda;
Uganda;
Southern
Africa
2010
2017
Aims
to
increase
access
to
modern clean
energy
services;
promote
a
wider uptake
of renewable
energy and
energy
efficiency
Ministry
of
Foreign
Affairs
of
Finland ; UK
Department
for
International;
the Austrian
Development
Agency
(ADA);
Focuses
on
projects in all
fields
of
renewable
energy,
e.g.,
part-financing to
make
good
ideas bankable
projects;
feasibility
studies aiming at
concrete
investments;
pilot; scale-up;
demonstration
projects
As of October
2013,
the
Program had
received more
than
1,000
concept notes,
of which 113
had
been
approved
for
funding.
Mobisol, one of
the
projects
funded, is now
East
Africas
largest rent-toown
solar
service provider
by
capacity
installed and a
reputable
company with
185 permanent
employees and
over 200 parttime staff in
Tanzania
Euro
million
Phase
(20102013);
Euro
million
Phase
(20132017)
25
1
35
KPMG ECO EEP Coordination

Office
PO Box 11265, Hatfield, 0028, South
Africa
E-mail:
eep.eco@kpmg.fi
Mobile:
+
27
(71)
742608
www.eepafrica.org
Page 43
NOTES AND REFERENCES
See Paulo Drummond, Ari Aisen, Emre Alper, Ejona Fuli, and Sbastien Walker , (2015), Toward a Monetary Union
in the East African Community Asymmetric Shocks, Exchange Rates, and Risk-Sharing Mechanisms I N T E R N A T I
O N A L M O N E T A R Y F U N D, The African Department
1
2 Kostadis
J. Papaioannou, (2015), Climate shocks, cash crops and resilience: Evidence from colonial tropical
Africa.
3
4
Paul Kirai and Mark Hankins, (20120, GTZ Regional Energy Advisory Platform (East Africa)
UNEP (2014), Keeping Track of Adaptation Actions in Africa: Targeted Fiscal Stimulus Actions Making a Difference.
United Nations Environment Programme (UNEP), Nairobi.
5
6
7
8
The new sustainable growth and development paradigm gives much attention to clean and renewable energy as a key factor
of success and solution in combating climate change.
9
Sustainable Development Summit (2015), Protecting our Planet and Combating Climate Change, Interactive Dialogue 4.
10Cited from DFID, (2015), Foreword to Defining Disaster Resilience: A DFID Approach Paper,
11
Mr. Achim Steiner is the current UN Under-Secretary-General and UNEP Executive Director.
The Global Commission on the Economy and Climate, (2015).
14
How does microfinance contribute to climate change adaptation? One authority explains that microfinance can
fulfil this role by closing the adaptation deficit, i.e., the shortage of adaptive capacity in a given resource poor
household, such as its lack of assets or savings. In this role, the literature is conclusive that indeed microfinance
indeed contributes immensely, though no such hard evidence exists that it similarly contributes to increasing their
income to the extent that they cross over the poverty line. But the evidence confirms that poor households take
advantage of microfinance to better cope with and recover from shocks and drawn-out periods of hardship, which
makes it particularly relevant to adaptation.
15
The global planetary ggreenhouse gas emissions reached and exceeded the critical threshold of 400 parts per
million in May 2013.
16
The Euromoney Magazine September 2015 issue cites how a green bond was issued in the US to finance the construction
of a shopping mall!
12
13
At an estimated $10 billion, the size of the energy market alone among many climate change mitigation and
adaptation activities in Africa points to significant economic opportunities for investment and household savings.
18
The gross loan portfolio of the African microfinance sector grew from $1.6 billion in 2000 to $8.4 billion by 2012,
while the customer base increased from 3 million to 20 million.
19
So far, the region has received just a third of estimated [] billion of CIF monies, most of it to just 15 of the
countries. And even in the 15 countries, few of the people living in rural and impoverished areas who struggle the
most to access financing have been able to benefit from climate finance schemes, largely due to lack of developed
markets.
20
See Phyllis Kariuki and Kavita Ravi, (2010), Market Survey of Possible Cooperation with Financial Institutions in
Kenya, Uganda, and Tanzania.
21
Whereas the aim of SPTF standards is to enable microfinance institutions to effectively translate their social
mission into practice in line with accepted social values, the GPA toolkit seeks to enable them to effectively
translate their environmental mission into the values embodied in the United Nations Conference on environment
and Development UNCED published and ratified by the community of nations in 1992.
17
22
See SPTF
See Credit Rating Agency of Bangladesh Ltd. (CRAB), 18 February 2010. BRAC Rating Report.
Rafael Moser, Lauro Emilio Gonzalez Farias, (2014). Microfinance and Climate Change: The Case of Agroamigo, EnANPAD.
13-17 September 2014.
23
24
A search result may contain hyperlinks to digital libraries, online Archives, full-text databases, or independent
scholarly sites, which host electronic versions or editions of published magazines or journals. On the other hand it
may contain links to format-specific repositories (which are now some of the most widely used resources), social
networking sites, or personal sites and general websites. None of the materials reviewed for this study was obtained
from a Wiki Site.
25
See Tarun Tapas Mukherjee, (), Online Research Methodology: Using the Internet and the Web for Research and
Publication, Bhatter College Journal of Multidisciplinary Studies, (ISSN 2249-3301), Vol. II, 2012., Bhatter College,
West Bengal, India.
27
In Kenya, the cost week on energy is: $8.75 on wood; $4.8 on charcoal; $6.9 on cooking gas (LPG); and $4.2 on
Kerosene.
26
28
29
See Bloomberg ..
The UNCDF CleanStart Energy Access Challenge initiative supports financial institutions and other enterprises
serving low-income people that want to pay for high-quality, clean energy.
31
See the Economist.
32
See Bloomberg, ibid.
33
Global Partnership on Output-Based Aid (GPOBA), (2015),
30
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Explorating Partnership Opportunities in The Promotion of Green and Inclusive Finance in East Africa

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CLIMATE CHANGE FINANCING

ACTIVITIES IN EAST AFRICA

DECEMBER 31, 2015

SURVEY OBJECTIVES AND SCOPE ..................................................................................................... 3

THE LITERATURE ...................................................................................................................................... 5

DATA AND METHODOLOGY ................................................................................................................... 9

MAJOR FINDINGS .................................................................................................................................... 10

POTENTIAL INVESTORS IN GREEN AND INCLUSIVE FINANCE ................................................. 13

Green and Inclusive Finance Situation in East Africa

Electrification Rate (% of population)

Share of Households in Agriculture

Agriculture Share of GDP (%)

National Burden of Diseases due to

Green and Inclusive Finance Situation in East Africa

SURVEY OBJECTIVES AND SCOPE

What is the ownership, and how are these organized institutionally?

Green and Inclusive Finance Situation in East Africa

SOCIAL AND ECONOMIC BENEFITS FROM GREEN AND INCLUSIVE FINANCE

BUILDING THE CAPACITY FOR GREEN AND INCLUSIVE FINANCE

Green and Inclusive Finance Situation in East Africa

DEFINITION OF KEY T ERMS AND CONCEPTS

Green and Inclusive Finance Situation in East Africa

Annual savings per household per year (in $,

Annual savings in barrels of crude oil equivalent

Economic and Energy Benefits

Annual savings of per household per year (in 4)

Number of households with better quality light

MOTIVATION FOR INVESTMENT IN GREEN AND INCLUSIVE FINANCE MICROFINANCE

Green and Inclusive Finance Situation in East Africa

INVESTMENT AREAS OR OPPORTUNITIES

THE BENEFITS OF GREEN AND INCLUSIVE MICROFINANCE TO THE POOR

Green and Inclusive Finance Situation in East Africa

THE VALUE PROPOSITION FOR INVESTMENTS IN GREEN AND INCLUSIVE MICROFINANCE

THE GPA INITIATIVE IN EAST AND SOUTHERN A FRICA

Green and Inclusive Finance Situation in East Africa

DATA AND METHODOLOGY

Green and Inclusive Finance Situation in East Africa

THE SEVEN STEPS TO MAIN FINDINGS

THE TOOLS AND ART OF ONLINE RESEARCH

Green and Inclusive Finance Situation in East Africa

Share of Households in Agriculture (%)

Green and Inclusive Finance Situation in East Africa

Source: The International Monetary Fund (2013), unpublished

Green and Inclusive Finance Situation in East Africa

POTENTIAL INVESTORS IN GREEN AND INCLUSIVE FINANCE

NUMBER AND COMPOSITION OF GREEN AND INCLUSIVE FINANCE INVESTORS

Green and Inclusive Finance Situation in East Africa

Source: Adapted from various

VOLUME OF FUNDS IN CLIMATE FINANCE

Green and Inclusive Finance Situation in East Africa

THE MARKET FOR GPA AND PROSPECTS FOR SCALE -UP

Climate Finance Approved

GHG Emissions Rank

Source: Climate Scope 2015

Green and Inclusive Finance Situation in East Africa

Green and Inclusive Finance Situation in East Africa

Agricultural bioenergy projects, etc.

Green and Inclusive Finance Situation in East Africa

Finance Innovation for Climate

Green and Inclusive Finance Situation in East Africa

Green and Inclusive Finance Situation in East Africa

Green and Inclusive Finance Situation in East Africa

Green and Inclusive Finance Situation in East Africa