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Pioneering a Climate Finance Instrument in Africa: Lessons from Two Years of the Green Outcomes Fund
The Green Outcomes Fund (GOF) is a pioneering climate finance instrument in South Africa that uses an outcomes-based payment model to de-risk investments in green SMMEs. By providing grant funding to Catalytic Finance Partners (CFPs) upon the verification of specific green outcomes—primarily permanent job creation—the GOF aims to bridge the investment gap for high-potential green businesses. The pilot phase, launched in January 2020 with a total facility size of ZAR 488.1 million, has demonstrated that such incentives can encourage fund managers to invest in sectors they previously avoided due to perceived risk. Key findings highlight the necessity of business development support for SMMEs and the importance of deep sector expertise for fund managers. While the fund has successfully created green jobs and diverted waste, it has faced challenges with slow drawdown of funds due to a prevalence of low-skilled jobs and the disruptive impact of COVID-19. The GOF is now exploring scaling strategies, including expanding its model within South Africa and extending its reach to other African countries such as Rwanda, Ethiopia, and Uganda.
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Document type: Report
CLIMATE FINANCE ACCELERATOR (CFA)
The Climate Finance Accelerator (CFA) is a UK-funded global programme designed to bridge the gap between available climate finance and promising projects by improving their bankability. In South Africa, the programme is delivered by the National Business Initiative and GreenCape, selecting 13 businesses from 120 applicants to receive capacity building in low-carbon technologies, climate mitigation, and blended finance to support the country's Nationally Determined Contributions (NDCs).
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Document type: Case study
GOF PHASE II Proposal
The GOF Phase II proposal seeks to raise USD 3-5 million in grant funding to leverage USD 15-20 million in private capital for green SMMEs in South Africa. Building on Phase I, which created 946 green jobs and achieved a 5x catalysation multiplier, the fund aims to de-risk investments in innovative green sectors to drive job creation. GreenCape serves as the fund manager, with design support from the Anglo American Foundation and evaluation from the Global Energy Alliance for People and Planet.
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Document type: Briefing
Strategic Framework: 2025-2030
The NAP Global Network's 2025-2030 Strategic Framework focuses on shifting national adaptation plans (NAPs) from planning to implementation. The strategy employs three reinforcing approaches: building systems (policy, coordination, and results frameworks), using levers (fiscal measures, public procurement, trade policy, and blended finance), and engaging diverse actors (finance ministries, subnational governments, civil society, and the private sector). The Network intends to provide embedded technical capacity, multi-year partnerships, and flexible on-demand support, with a specific focus on least developed countries, Small Island Developing States, and conflict-affected contexts.
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Document type: Report
green energy infrastructure project portfolio
Nuru, funded by Team Europe and Gaia Impact, has deployed solar-hybrid mini-grids in the Democratic Republic of Congo, providing renewable energy to approximately 15,000 people and 796 SMEs. The portfolio has installed 1.7 MW of capacity, created 116 local jobs, and mitigated 3,300 cumulative tonnes of CO2 emissions to date.
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Document type: Case study
DRE Impact Stories
The document details several Team Europe-funded green energy projects in Africa, focusing on solar mini-grids and solar home systems (SHS). Key initiatives include ANKA's Angovo project in Madagascar, ENGIE Energy Access's SHS scaling in Uganda, FRES's energy-as-a-service model in Mali, Burkina Faso, Uganda, and Guinea-Bissau, and projects in the Democratic Republic of Congo, Lesotho, and Sierra Leone. These projects aim to increase electricity access for households, SMEs, and public institutions while reducing CO2 emissions and fostering local economic growth through job creation and improved services in health and education.
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Document type: Case study
MAXIMISING IMPACT: TRANSFORMING GRANT FUNDING FOR ENERGY ACCESS
ENGIE Energy Access identifies a critical funding gap and strategic misalignment in the effort to achieve universal energy access in Sub-Saharan Africa. The report argues that current grant funding is too limited, fragmented, and often diverted from core household electrification toward higher-tier or niche goals. It proposes four strategic shifts: refocusing on basic household access (Tier 1–2), tailoring financial instruments to specific market segments, increasing the share of grants in the capital mix to approximately 50%, and transitioning to coordinated programmatic platforms with standardised administration.
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Document type: Report
green energy mini-grid infrastructure project portfolio
The Angovo project, implemented by ANKA in southern Madagascar, aims to install over 3.5 MWp of solar mini-grid capacity to serve 15,600 clients and approximately 70,000 beneficiaries. With a total budget of EUR 14,550,000, the project utilizes a blended finance model involving the EU, AFD, GIZ, and private investors. Beyond electricity provision, the initiative integrates e-health, e-education, and Agrigrid© programs to stimulate rural economic development and mitigate up to 5,000 tonnes of CO2 emissions per year.
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Document type: Fact sheet
green energy infrastructure project portfolio
The project portfolio implemented by Foundation Rural Energy Services (FRES) provided distributed renewable energy to 46,500 people across Mali, Burkina Faso, Uganda, and Guinea-Bissau. Utilizing a mix of FRES foundation financing and EU co-financing via the ACP-EU Energy Facility, the initiative installed 305 kWp of mini-grid capacity and 1,204 kW of solar home systems. Between 2014 and 2021, the project established nearly 10,000 new energy connections, including 7,169 for agricultural households and 2,064 for small businesses, while electrifying 217 schools and 65 clinics. The project mitigated 19,400 cumulative tonnes of CO2 emissions, created 61 local jobs, and established four commercial energy companies to ensure long-term operational sustainability.
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Document type: Case study
Nigeria’s post-COVID-19 Macroeconomic Policies: Are They Climate Change Friendly?
The document evaluates Nigeria's macroeconomic recovery strategies following the COVID-19 pandemic, analyzing their compatibility with the nation's goal of achieving net-zero emissions by 2050. While the National Development Plan (NDP) and Economic Sustainability Plan (ESP) include green initiatives—such as solar electrification and climate-smart agriculture—the author notes a lack of clear implementation tracking and a persistent reliance on oil-led growth. The brief recommends removing fossil fuel subsidies, expanding blended finance, and prioritizing gender-responsive climate-smart agriculture to ensure a sustainable green recovery.
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Document type: Policy brief
Taking the Pulse
The report 'Taking the Pulse 2019' identifies a total financing need of $6.4 billion by 2030 to achieve SDG 7 in Madagascar, the Philippines, and Uganda. It breaks down these needs by technology—mini-grids, standalone solar systems, and improved cookstoves—and by capital type, including grants, equity, debt, and affordability gap funding. The analysis highlights that while grid electrification remains important, off-grid solutions are essential for reaching isolated populations. The report provides specific projections for each country, noting that Uganda has seen success in standalone solar, the Philippines relies heavily on mini-grids due to its geography, and Madagascar faces severe infrastructure and affordability challenges. It concludes with policy recommendations for development partners, governments, and investors to mobilize the necessary capital and create enabling regulatory environments.
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Document type: Report
Powering Healthcare Nigeria Market Assessment and Roadmap
The report identifies significant energy gaps in Nigeria's healthcare system, noting that 40% of primary healthcare centres (PHCs) lack electricity. It proposes a phased roadmap to electrify 10,000 functional PHCs by 2030, estimating a total cost of $525 million for CAPEX and OPEX over 15 years. The document analyzes three delivery models—traditional equipment ownership, service-based, and a proposed hybrid model—recommending the hybrid approach for Type 2 PHCs to balance private sector efficiency with public sector constraints. Key recommendations include the creation of a centralized dynamic database for health facility energy status and the use of blended financing to mitigate risks for private energy service companies.
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Document type: Report
Policy and market interventions to achieve sustainable cooling for all in Kenya
The report outlines a strategic framework for Kenya to achieve sustainable cooling through the integration of cooling needs into national energy and climate policies, such as the Nationally Determined Contributions (NDC) and the National Climate Action Plan (NCAP). It proposes the creation of a cross-ministerial coordinating committee and the development of 'Cool Cities' through urban heat mitigation and green spaces. Key regulatory recommendations include updating the National Building Code for passive cooling and aligning Minimum Energy Performance Standards (MEPS) with United for Efficiency (U4E) model regulations by 2025. To support the agricultural and healthcare sectors, the document advocates for modernized cold chain infrastructure and the use of catalytic financing instruments like green bonds and blended finance to attract private investment.
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Document type: Report
Policy and market interventions to achieve sustainable cooling for all in Ghana
The policy brief outlines a framework for Ghana to achieve sustainable cooling through the integration of cooling needs into national energy and climate plans, the establishment of a National Cooling Plan Committee, and the adoption of passive cooling and energy efficiency standards. It emphasizes the need for 'Cool Cities' initiatives in urban centers like Accra and Kumasi, the modernization of cold chains for agriculture and healthcare via renewable energy, and the use of innovative financing like green bonds to attract private investment.
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Document type: Policy brief
Energizing Finance
The report finds that global finance for energy access is insufficient, with electricity commitments reaching only half of the required USD 52 billion annually and clean cooking funding declining to USD 30 million. While electricity finance increased to USD 30.2 billion in 20 high-impact countries, it is heavily concentrated in Asia, particularly India, while Sub-Saharan Africa sees declining investments and a shift toward fossil fuels. Clean cooking remains severely underfunded, relying heavily on international grants. Case studies highlight India's success in mobilizing private finance for renewables and Indonesia's use of government subsidies to scale LPG adoption.
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Document type: Report
Powering Healthcare – Nigeria Market Assessment and Roadmap
The report finds that Nigeria's health sector is severely underfunded, with the health budget averaging 5% of the national budget, far below the 15% Abuja declaration. Consequently, over 75% of health spending is borne by households through out-of-pocket expenses. Primary healthcare facilities (PHCs) often rely on user fees to cover operational costs, including electricity from the grid and fuel generators, which cost an average of ₦23,500 to ₦48,000 per month. To achieve the NPHCDA target of 10,000 electrified PHCs, the report estimates a total requirement of $525 million, split between short-term needs ($180 million for 3,433 facilities) and medium-term needs ($345 million for 6,567 facilities). The document recommends a blended financing approach combining government funds like the Basic Healthcare Provision Fund (BHCPF), donor grants, and private sector debt and equity to mitigate risks for energy service companies.
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Document type: Report
FOSTERING INDUSTRIAL HUBS FOR ENERGY TRANSITION TECHNOLOGIES IN AFRICA
The report argues that Africa has a significant opportunity to transition from a 'pit-to-port' resource extraction model to a green industrialization strategy focused on solar PV, batteries, and electric vehicles. It highlights that while Africa holds approximately 30% of the world's essential transition mineral reserves, it lacks investment in manufacturing, with most clean-tech imports originating from G20 countries, particularly China. The document proposes a G20 Action Plan involving a financing roadmap, a dedicated partnerships platform, and reforms to international trade and technology access norms to enable African countries to build competitive local value chains and create millions of green jobs.
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Document type: Report
SUSTAINABLE COOLING FOR ALL IN KENYA
The report assesses Kenya's cooling landscape, highlighting that 9.6 million people are at high risk due to lack of cooling access. It identifies critical needs in agriculture, where 40% of food is lost annually, and healthcare, where electricity gaps hinder vaccine cold chains. To mitigate these issues and align with the Energy Transition and Investment Plan (ETIP) 2023-2050, the document recommends eight policy interventions, including the adoption of passive cooling, stricter Minimum Energy Performance Standards (MEPs), and the phase-out of HFC refrigerants. It also proposes financial strategies such as green bonds and blended finance to overcome high upfront costs for sustainable cooling technologies.
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Document type: Report
Inclusive Climate Finance for Vulnerable Communities in the Asia-Pacific (ICCAP)
The ICCAP project (2024-2029) seeks to enhance resilience in Asia-Pacific by scaling green financial products for rural smallholders and marginalised groups. It focuses on policy analysis, capacity building for financial service providers, and the creation of a Regional Adaptation Investment Facility (RAIF) to mobilise private capital. The project targets 14,000 direct beneficiaries across Bangladesh, Bhutan, Cambodia, Lao PDR, Nepal, and Fiji, with a goal of catalysing 250 million EUR for climate adaptation.
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Document type: Fact sheet
Condiciones para acelerar la transición energética en Colombia
The document identifies critical bottlenecks in Colombia's energy transition, specifically in transmission infrastructure and licensing, which cause project delays of three to six years. It argues that while capital is available, there is a shortage of bankable, large-scale projects. To bridge a projected annual investment gap of 27.7 billion COP (approximately 7.5 billion USD) in clean energy for 2026-2030, the report recommends utilizing blended finance, asset securitization, and a dedicated economic transition fund to support regions dependent on fossil fuels, where 448,000 jobs are at risk by 2035.
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Document type: Report