Africa stands on the cusp of an energy revolution, and the African Climate Foundation (ACF) is proud to partner with Renew2030, a coalition dedicated to driving this transformation. Renew2030’s mission is to scale global wind and solar capacity to stay on track for limiting global warming to 1.5°C, while also enhancing energy security, creating new jobs, and delivering a wide range of health, climate, and economic benefits.
In this context, the ACF is also pleased to highlight its recent collaboration with Konexa, which has played a key role in developing Nigeria’s first private renewable electricity trading platform. This innovative project exemplifies how strategic philanthropic efforts can unlock significant private sector investment on a large scale.
The Foundation’s approach focuses on creating the right conditions for investment to thrive, particularly in sectors like renewable energy that require patient, early-stage capital. In the case of Konexa, the ACF’s support came at a pivotal moment when Konexa was transitioning from its first project to the next phase of development. This critical project preparation assistance, including feasibility studies and capacity-building efforts, helped Konexa secure $16.29 million in MIGA guarantees and $18 million in blended finance.
This initiative marks a significant step forward for Nigeria’s energy sector. As one of the first companies to receive a private energy trading license from the Nigerian Energy Regulatory Commission (NERC), Konexa will source renewable power from independent power producers (IPPs) and sell it directly to private clients. Their inaugural client, Nigeria Breweries PLC, will transition two of its facilities in Kaduna State to 100% renewable energy sourced from the 30MW Gurara Hydro Power Plant. This transition is expected to reduce over 8000 tons of CO2 emissions annually, making a meaningful contribution to Nigeria’s climate goals.
This partnership clearly demonstrates how philanthropic support can play a vital role in catalysing private investment for clean energy. For the ACF, strategic interventions are often the difference between a project remaining at the conceptual stage or moving forward into implementation. By addressing key barriers – such as early-stage funding, capacity building, and feasibility studies – the ACF has unlocked tens of millions of dollars in investment, creating long-lasting impacts on Nigeria’s energy infrastructure.
The financing milestone achieved with Konexa has opened the door for further investments. The ACF’s support has positioned Konexa to pursue additional funding, with ongoing discussions involving Climate Fund Managers (CFM) and other institutional investors to secure financial backing for further project development. These funds will help Konexa advance two more renewable energy projects, which are expected to reach financial close by 2025. This continued growth would not have been possible without the ACF’s early involvement, which de-risked the project for larger investors and enabled Konexa to secure match funding commitments from their investors.
The ACF has developed a platform approach that tackles systemic barriers to investment by creating an ecosystem that nurtures and accelerates clean energy development. This approach focuses on building capacity, influencing policy, and addressing critical infrastructure gaps, ultimately enabling large-scale investments in climate-resilient sectors across Africa.
“Our focus is on achieving concrete outcomes that impact the real economy. We have concentrated much of our efforts on Climate and Development Investment Platforms, moving away from traditional philanthropic activities. This strategic pivot positions the ACF to adopt more comprehensive, action-oriented approaches that leverage political alignment, policy reform, and investment facilitation to scale transformative projects,” said Saliem Fakir, Executive Director of the ACF.
In the case of Konexa, this platform approach was crucial not only in securing financing but also in enhancing the broader resilience and sustainability of Nigeria’s energy system through electricity trading. The success of this partnership highlights the power of combining philanthropic support with innovative private sector solutions to address critical challenges like energy access and sustainability across Africa.
