New French fund commits $100m to the development of solar energy in Africa.

French fund manager RGREEN INVEST and investment adviser ECHOSYS INVEST said on Friday that a new investment fund with 87.5 million euros ($92.63 million) will finance solar power production across Africa, with a concentration on West and Central Africa.

According to the announcement, the first close of the AFRIGREEEN Debt Impact Fund would fund on- and off-grid solar power facilities for small- and medium-sized commercial and industrial clients across the continent.

For the development of solar infrastructure, the project proposes to offer direct loans and asset-based debt facilities to regional, global, and African commercial and industrial firms.

In order to achieve their long-term debt financing needs of between 10 and 15 million euros, with an average of roughly 5 million euros over eight to ten years, the groups are aiming to have a portfolio of 20 to 30 assets, according to the statement.

The fund also offers long-term local currency financing in Ghana and Nigeria with assistance from the Private Sector Window Local Currency Facility of the International Development Association.

The Fund’s effect goals would be measured in terms of installed megawatts (MW), megawatt-hours (MWh), tonnes of CO2 emissions, liters of fuel avoided, and the number of businesses that directly or indirectly use new funding channels, it was announced.

The impact will also be gauged by how many commercial and industrial businesses are able to modernize and increase the effectiveness of their power-producing facilities.

According to RGREEN INVEST and ECHOSYS INVEST, the European Investment Bank (EIB) and the International Financial Corporation made commitments for the first closing (IFC).

According to the release, the first round of fundraising was completed by the French banks Societe Generale and BNP Paribas.

The company hopes to raise a total of 100 million euros from private investors and development financing organizations.