Geothermal Risk Transfer Facility

The Geothermal Risk Transfer Facility aims to catalyse private investment in African green energy by establishing a joint underwriting facility backed by local insurers to cover early-stage geothermal drilling risks. In Kenya, four insurance companies (Sanlam, APA, ICEA Lion, and Mayfair) have committed as founding members, and engagement with the regulator is positive. In Ethiopia, the programme has engaged with 13 of 18 insurance companies and plans a gap analysis with the national regulator.

• The programme seeks to mobilise African risk capital to de-risk renewable energy development, specifically by creating a joint underwriting facility to cover early-stage geothermal drilling risks, with the intent to eventually expand to other climate mitigation and adaptation risks in Africa.
• In Kenya, the facility has secured commitments from four founding member companies—Sanlam, APA, ICEA Lion (the lead), and Mayfair—and is working with the regulator to institute the underwriting facility and a reinsurance vehicle managed by Parhelion.
• Initial engagement in Ethiopia involved an event on 20 May attended by 13 of 18 insurance companies, representing 80% of the market, and a gap analysis with the Ethiopian regulator is scheduled for the current quarter.

APA

FSD Africa (2022). Geothermal Risk Transfer Facility. https://fsdafrica.org/wp-content/uploads/2025/05/Risk-Resilience-Geothermal-Risk-Transfer-Facility.pdf

Chicago

FSD Africa. Geothermal Risk Transfer Facility. 2022. https://fsdafrica.org/wp-content/uploads/2025/05/Risk-Resilience-Geothermal-Risk-Transfer-Facility.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Geothermal Risk Transfer Facility |date=October 2022 |url=https://fsdafrica.org/wp-content/uploads/2025/05/Risk-Resilience-Geothermal-Risk-Transfer-Facility.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2022geothermal, author = {{FSD Africa}}, title = {{Geothermal Risk Transfer Facility}}, institution = {FSD Africa}, year = {2022}, month = oct, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Risk-Resilience-Geothermal-Risk-Transfer-Facility.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }