Africa Energy Guarantee Facility

The Africa Energy Guarantee Facility (AEGF) is an initiative launched by the European Investment Bank (EIB), Munich Re and the African Trade Insurance Agency (ATI). It is supported by KfW to increase the availability of long-term capital for the African energy sector through investment and trade insurance services.

AEGF offers dedicated guarantees to support reinsurers in the provision of investment and trade insurance services for eligible energy projects. The guarantees cover against sovereign or sub-sovereign non-payment under a power purchase agreement, expropriation and breach of contract, currency inconvertibility, war, civil unrest and arbitration award default.

The project must comply with the Sustainable Energy for All criteria set by the EU. The project must be:

• In line with the energy policy or strategy of the beneficiary country, as well as the development cooperation policy as agreed with the EU.
• An investment project aligned with at least one of the following objectives: energy access, rural electrification, energy efficiency and renewable energy.
• Located in rural, peri-urban and urban areas.

Eligible Insurers: Risks covered through AEGF will be underwritten by ATI with assistance from SRF Consulting, which is the examining institution of AEGF.

Primary insurers must prove a significant track record in providing insurance to energy projects in Africa and must have sufficient capacities to provide solid underwritings.

Member countries of ATI: Benin, Burundi, Côte d’Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria Rwanda, South Sudan, Tanzania, Togo, Uganda, Zambia, Zimbabwe.

http://www.eib.org/en/projects/pipelines/pipeline/20120168