France AFD Approve USD12m Credit for Tanzania Renewable Energy
The French Development Agency (AFD)
approved a USD12m credit line to the Bank of Africa – Tanzania (BOA-T) to
finance renewable energy and energy efficiency projects in the country.
The credit facility agreement was
signed by Bruno Deprince, AFD East Africa Community Regional Director and
Ammishaddai Owusu-Amoah, Managing Director and CEO of BOA-T, on November 22nd,
2016.
The credit line will enable BOA-T to provide
both short-term and long-term funding at attractive interest rates to both
public and private sector clients to implement renewable energy and energy
efficiency projects.
“The project will contribute to increasing
energy efficiency and the share of renewable energy in the Tanzania economy,
consequently contributing to reduction of CO2 emissions and the pressure placed
on fossil fuels,” BOA-T and AFD joint press release indicates.
“The facility will thus help in
facilitating Tanzanian entities and businesses to access affordable green
technologies and to invest in rationalization of energy use, thus helping them
to improve their efficiency and overall competitiveness as well develop clean
energy.
” The credit line is also
accompanied with a technical assistance program funded by the European Union
(EU) to enable BOA-T to strengthen its capacities in green finance.
The technical assistance will also
provide expertise for potential investors and project developers to further
build on their expertise in developing viable renewable energy and energy
efficiency investments.
This support covers the entire
investment process and includes projects preparation, risk assessment, and bank
capacity building.
The signed agreement falls under the
Sustainable Use of Natural Resources and Energy Finance (SUNREF) East Africa
program.
SUNREF East Africa Launched in 2011,
SUNREF East Africa is promoting the development of a low carbon economy in the
region (Tanzania, Uganda, Kenya) by financing the development of renewable
energy and energy efficiency solutions.
To support private investment in green energy
and energy efficiency, AFD supports local banks in identifying green investment
opportunities and in allocating green loans with favorable conditions for
tailor-made debt.
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