Currency Risk Hedging Facility for Renewable Energy and Energy Efficiency in Africa

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Energy security and global climate protection are among the key challenges of the 21st century. Access to energy is one of the most important prerequisites for economic and social development. Due to the steady economic growth in developing and emerging countries, energy consumption will increase significantly and, to the extent that energy needs are covered by traditional energy sources, will have negative environmental and climate consequences. In order to meet the challenges of a climate-friendly and efficient energy supply, TCX will be an innovative financing instrument from 2016 onwards to hedge currency risks of financial institutions, renewable energy providers and suppliers who promote investments in renewable energy, renewable energy and GHG reduction. This is intended to make a contribution to sustainable financing of the sector and an improvement in energy supply. The target region of TCX is initially Africa with the countries Rwanda, Uganda, Kenya, Tanzania, Zambia, Ghana and Nigeria. An expansion to other regions, e.g. Asia, is planned in the medium term.