FX – Facility for Renewable Energy and Energy Efficiency in Africa
As of: May 2020
Objective and activities
With the help of financing from IKI, KfW will invest in ‘The Currency Exchange Fund (TCX)’, which safeguards projects against foreign exchange (FX) rate risks related to ‘exotic currencies’. The IKI funding will have a twofold impact in terms of mobilizing climate finance: additional funding partners will invest in TCX and, on this basis, financial institutions will join forces with energy suppliers and smaller power utilities to finance projects in the field of renewable energy and energy efficiency (4E). In total, climate-friendly Investments up to USD 1,3 Billion USD particularly in sub-Saharan Africa will benefit from this insurance mechanism, according to calculations provided by KfW. It is expected that this results in reducing 500,000 tCO2e per year. The programme will also promote the sustainable development of the local financial markets.
State of implementation/results
- Targeted training of interested parties through online webinars (www.tcxfund.com/…)
- In November 2018, the TCX investment was increased by EUR 20 million and extended by 20 years.