Consideration of funding proposals – Addendum VI Funding proposal package for FP211

The "Hardest-to-Reach" (H2R) programme aims to provide clean, climate-resilient off-grid solar (OGS) energy to 72.4 million people across 16 sub-Saharan African countries. The initiative utilizes a two-pronged financing approach: a $50 million grant-funded Market Support Facility (MSF) to support market entry and capacity building for new players, and a $200 million blended finance Market Expansion Facility (MEF) providing impact-linked loans to scale existing OGS companies. The programme targets a mitigation outcome of 5.1 million tCO2eq avoided and an adaptation outcome of 54.3 million first-time energy access beneficiaries. It emphasizes gender inclusivity, targeting 32% female customers and creating approximately 13,922 green jobs, including 4,641 for women.

• The programme targets 16 sub-Saharan African countries: Benin, Burkina Faso, Burundi, Chad, DRC, Guinea, Guinea Bissau, Lesotho, Malawi, Mozambique, Niger, Sierra Leone, Somalia, Togo, Uganda, and Zambia.
• The total financing for the initiative is $250 million USD, with $65 million requested from the Green Climate Fund (GCF).
• The GCF funding request consists of $50 million in equity, $10 million in repayable grants for the Market Support Facility, and $5 million in grants for performance incentives.
• The programme expects to reduce or avoid 5,109,205 tCO2eq over its total lifespan.
• The initiative aims to reach 54,331,312 total beneficiaries, with 9,944,285 as direct beneficiaries and 44,387,027 as indirect beneficiaries.
• The programme intends to install 120 MW of new decentralized solar energy generating capacity across the target geographies.
• The Market Support Facility (MSF) is a $50 million grant-funded vehicle designed to prove market approaches using debt, equity, and grants, alongside technical assistance.
• The Market Expansion Facility (MEF) is a $200 million blended finance vehicle providing impact-linked debt to OGS companies, with interest rates tied to KPIs regarding first-time energy access and poverty levels.
• The programme expects to create approximately 13,922 clean energy jobs, with 4,641 of these being for women.
• The initiative addresses climate vulnerability in LDCs where electrification rates are at or below the sub-Saharan African average of 48% and poverty rates are 45% or above.
• The programme identifies several climate hazards in the region, including rising temperatures, droughts, floods, and extreme weather events like tropical cyclones, which compromise centralized energy grids.
• The initiative's gender strategy aims for 32% of customers to be women and includes a Gender Action Plan to support women-led businesses and female employment in the OGS sector.
• The programme's implementation period is 12 years, consisting of a 10-year initial period and a 2-year extension.
• The Independent Technical Advisory Panel (iTAP) rated the programme's impact potential as 'High', its paradigm shift potential as 'Medium', and its sustainable development potential as 'Medium to High'.

APA

Green Climate Fund (2023). Consideration of funding proposals – Addendum VI Funding proposal package for FP211. https://www.greenclimate.fund/sites/default/files/document/gcf-b36-02-add06.pdf

Chicago

Green Climate Fund. Consideration of funding proposals – Addendum VI Funding proposal package for FP211. 2023. https://www.greenclimate.fund/sites/default/files/document/gcf-b36-02-add06.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Consideration of funding proposals – Addendum VI Funding proposal package for FP211 |date=19 June 2023 |url=https://www.greenclimate.fund/sites/default/files/document/gcf-b36-02-add06.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2023consideration, author = {{Green Climate Fund}}, title = {{Consideration of funding proposals – Addendum VI Funding proposal package for FP211}}, institution = {Green Climate Fund}, year = {2023}, month = jun, url = {https://www.greenclimate.fund/sites/default/files/document/gcf-b36-02-add06.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }