CFM to Manage US$1.3bn African Energy Transmission Fund

The Southern African Power Pool (SAPP) and Southern African Development Community (SADC) have named climate-focused blended finance fund manager Climate Fund Managers (CFM) as manager for their new Regional Transmission Infrastructure Financing Facility (RTIFF). The US$1.3 vehicle will focus on improving strategic interconnection and cross-border energy transmission in Southern Africa. Energy transmission infrastructure projects are typically high-risk and capital-intensive, meaning funding independently through sovereign capital alone is a challenge. RTIFF’s blended finance model aims to circumvent this issue through the use of public capital to balance risk and enable private capital entry. The facility was launched with US$20 million in commitments from the SAPP, and is targeting a first close at US$500 million in 2025, followed by a final close at US$1.3 billion within two years. The SAPP is the result of a cooperation between 12 Southern African countries – including Angola, Botswana, the Democratic Republic of the Congo, South Africa, and Zimbabwe – represented through national power utilities, and some private utilities supported by the SADC. “Access to capital is the number one barrier facing developers of energy transmission infrastructure [and] RTIFF dismantles this by enabling the private sector to work alongside public sector utilities to roll out new transmission lines at scale,” said Victor Mapani, SAPP’s Executive Committee Chair. “We are delighted to have appointed CFM with their strong track record in the African energy sector to establish and manage this innovative facility and to help our member states finally secure a sustainable, resilient energy supply.”

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