Africa Energy Guarantee Facility AEGF

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Renewable energy in Africa is still a niche market for most private (re)insurers. Typically, transactions in this sector are technically and financially complex, resulting in high underwriting costs and upfront investments to build up the required expertise. The private insurance and reinsurance market tends to struggle to provide cost-effective reinsurance protection for SE4ALL projects and is naturally more focused on larger-scale sectors - such as oil and gas, mining or dealing with large multinational companies and their traditional key customers. The challenge for the private sector to provide meaningful and cost-effective protection for SE4ALL projects in Africa is the main obstacle in the sector for primary insurance institutions such as ATI, which have limited capital resources and rely on reinsurance and risk sharing to conduct their activities. By using a product to improve the creditworthiness of the portfolio and stimulate additional private reinsurance capacity adapted to the SE4ALL projects, AEGF supports ATI in its objective of promoting the SE4ALL projects in its member countries. The projects must be in line with the energy policy or strategy of the respective recipient country as well as with the development policy at national and/or regional level of the partner country - coordinated with the European Union and/or the EU Member States.