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Promoting Private Financing for Sustainable Energy in Africa: The Role of the Africa Energy Guarantee Facility
This policy brief assesses the Africa Energy Guarantee Facility (AEGF), a risk mitigation instrument launched by the European Investment Bank to attract private investment into Africa's sustainable energy sector. While the AEGF aims to unlock $1.4 billion in clean energy investment by providing insurance against political and sovereign risks, the document argues that its success depends on African policymakers creating enabling regulatory frameworks and reducing the high transaction costs and risks that currently deter private investors.
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Document type: Policy brief
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