Six African nations get US$1.1bn for RE

Africa Climate Investment Fund

Six African countries are to be awarded US$1.1 billion in new funding from the US-based Climate Investment Fund (CIF) for the development of renewable energy projects.

Mozambique, Niger, and Zambia will receive between US$50-US$70 million in low interest loans while Morocco, South Africa, and Egypt will receive US$150 million, US$500 million, and US$300 million respectively, to bolster investments in clean energy, as told by AE-Africa.com.

Katherine Sierra, vice president of sustainable development at the World Bank, said: "CIF financing is teaching us how to work together with governments, civil society and the private sector to make truly transformational investments a reality.

"Each CIF dollar so far is leveraging an additional 10 dollars in private and public investments."

South Africa

South Africa has ambitions to generate 4 percent of its electricity from renewable sources by 2013, and it will receive US$500 million from the Clean Technology Fund to help it achieve this goal. South Africa also want to improve energy efficiency by 12 percent by 2015, and providing one million households with solar water heating over the next five years.

The primary objectives of the South African government are to scale up grid-connected solar thermal power, utility-scale wind power development, solar water heaters, and demand-side energy efficiency.

Morocco

Morocco will be receiving US$150 million to help establish a national Energy Development Fund. This will be then become the dominant factor in helping the government enhance energy security and pursue low-carbon growth, including a 600 percent increase in wind power and a 15 percent reduction in energy use in buildings, industry, and transport by 2020.

Egypt

Egypt will spend its US$300 million on supporting the Power Sector Strategy and Greater Cairo Urban Transport Strategy. The financing, endorsed by the CTF Trust Fund Committee earlier this year, will be used to develop wind power and low carbon urban transport systems.

With the UN summit on climate change looming, participation from all continents in the fight against climate change is more important than ever. Furthermore, with the West coming under strong criticism from the developing world for not taking the lion's share of responsibility for global warming, the fact that the CIF is US-led is highly significant.

The funds were designed as an interim measure to strengthen the global knowledge base for low-carbon and climate-resilient growth solutions.

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