Madrid, January 16, 2023. Spanish Cooperation (Cooperación Española) will boost access to renewable energy for some 180,000 people in rural and peri-urban areas across Africa. To achieve this, the director of the Spanish Agency for International Development Cooperation (AECID), Antón Leis, and the chairman of the Spanish Development Finance Institution (COFIDES), José Luis Curbelo, have signed a framework agreement that will enable the two institutions to work together, along with the EU, to advance the Renewable Energy Support Programme in Africa.

This programme is a joint initiative of the AECID and COFIDES aimed at supporting renewable energy projects in Sub-Saharan Africa, under the umbrella of the European Overseas Investment Plan and its financial arm: the European Fund for Sustainable Development. The objective is to support the development of small-scale electricity generation solutions - mini/off grid - based on renewable energies that distribute electricity to a limited number of customers - households, businesses or both - through a distribution network that can operate in isolation from national transmission grids.

The programme will contribute to the improvement of electricity supply in rural and/or peri-urban areas, with significant benefits for people who do not have access to reliable energy sources. It is estimated that, upon its completion, around 180,000 people will have benefited from the programme. It will also lead to a reduction in emissions of 17.4 tn CO2 eq/year.

This programme will mobilise up to 28 million euros from the Development Promotion Fund (FONPRODE) managed by the AECID. COFIDES' participation will allow the FONPRODE to benefit in turn from the coverage of the European Fund for Sustainable Development (EFSD) Guarantee, with 20 million euros. It will also allow for the channelling of 2 million euros from the EU for technical assistance. In addition to the aforementioned funding, the mobilisation of more than 40 million euros from private investors is foreseen for the implementation of the different projects supported by this programme.

After signing the contract, José Luis Curbelo, chairman and CEO of COFIDES, said that this project is "the result of the close collaboration between COFIDES, the AECID and the European Union. And we hope to strengthen this collaboration in order to continue optimising our capacities as accredited entities for the management of the EU budget in the field of development financing".

He also explained that this project is "highly significant, as access to electricity is a key factor for the economic and social development of low-income areas and its impact will be reflected, for example, in the general improvement of the quality of life of the affected populations, as well as in the creation of direct and indirect employment associated with the energy transition sector".

For his part, Antón Leis, director of the Spanish Agency for International Development Cooperation, said that the signing of the contract "will allow us to further strengthen the ties we have with COFIDES, leading to the increased effectiveness of our financial cooperation so that we can provide access to renewable energy to the most vulnerable people on the African continent".

"This initiative," continued Leis, "is part of Spanish Cooperation's commitment to mitigation, with the aim of reducing the pace and magnitude of the climate crisis, and to adaptation, which is essential if we are to reduce the damage caused by this crisis to the most vulnerable populations. Access to sustainable energy sources will, for example, allow water to be pumped to homes or crops, thus facilitating more efficient agricultural production, while at the same time ensuring food security, respecting the environment and promoting the reduction of emissions".

ABOUT THE AECID

The AECID, or Spanish Agency for International Development Cooperation, is Spanish Cooperation's chief management body, focused on sustainable human development and the fight against poverty. It is under the responsibility of the Ministry for Foreign Affairs, the European Union and Cooperation through the Secretariat of State for International Cooperation.

The agency works alongside its partners in more than 30 countries, through its network of Technical Cooperation Offices, Cultural Centres and Training Centres. It employs instruments such as technical cooperation, economic and financial cooperation, humanitarian aid and education for development and social awareness. ​ 

ABOUT COFIDES

COFIDES is a a state-owned company engaging in the management of State and third-party as well as its own funds, pursues a number of aims: internationalisation of Spain’s economy, furtherance of economic development and fortification of the solvency of companies affected by COVID-19. In addition to the Spanish State, its shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).