Feasibility study and development of a concept for the establishment of the AfricaGoGreen Fund (AGG)
In September 2018, IPC conducted a pre-feasibility study on behalf of KfW in Côte d’Ivoire to deepen KfW’s understanding of Ivorian private sector demand and supply for renewable energy. The goal of the pre-feasibility study was to determine whether there would be a potential role for KfW in supporting the establishment of a potential structured facility focused on reducing renewable energy investment risk for private sector investors and financial institutions.
Following the pre-feasibility study, KfW planned to establish a dedicated fund on behalf of the German Federal Ministry of Economic Cooperation and Development. The foreseen objective of the fund was to foster private investment in green energy technologies in Côte d’Ivoire.
In the pre-feasibility study, IPC identified three market segments for financing through such a fund: on-grid independent power producers, off-grid solutions for RE/EE industrial customers, and off-grid RE/EE solutions for MSMEs and households.
KfW then contracted IPC to conduct a follow-up feasibility and market study aimed at identifying, analysing and sizing investment potential in three green energy market segments prior to fund setup. IPC identified main stakeholders in these market segments and conducted interviews to better understand their business models, strategies and growth objectives. IPC also met with relevant Ivorian financial institutions to understand their markets, products and strategies. Finally, IPC assessed and estimated the current and potential investment volume in the Ivorian green energy sector and met with investors, donors and development finance institutions to assess potential co-operation in the fund.
The recommendations provided by IPC ultimately resulted in the set-up of the AfricaGoGreen Fund (AGG) in February 2021.