World Bank plans $40 million investment in Camco Clean Energy fund for African renewable projects

World Bank Group’s private sector arm, International Finance Corporation (IFC), is considering a $40 million investment in Camco Clean Energy’s renewable energy debt fund as it seeks to expand access to climate finance and electricity across sub-Saharan Africa.

According to IFC’s project disclosure, the proposed investment would provide senior debt financing to Camco REPP 2 SCSp, a Luxembourg-domiciled private debt fund targeting renewable energy projects across East, West and Southern Africa. The project is currently pending approval, with a projected Board date of November 6, 2026.

Camco REPP 2 targets smaller renewable projects

Established in 2024, REPP 2 is an Article 9-aligned fund under the European Union’s Sustainable Finance Disclosure Regulation and focuses on late-stage development, construction-phase and corporate financing for renewable energy projects.

The fund targets investments of between $2 million and $15 million across off-grid solar, mini- and metro-grids, isolated grids, commercial and industrial projects, and small renewable independent power producers.

The proposed IFC financing would form part of the fund’s senior debt tranche and support lending to infrastructure joint ventures and other eligible renewable energy projects.

Investment backed by credit protections

REPP 2 is structured across three capital tranches: junior equity, senior equity and senior debt.

IFC’s proposed investment would benefit from structural credit protection, including mandatory subordination of at least 50% at the senior debt level through the junior and equity tranches.

The fund also has access to an up-to-$35 million portfolio guarantee from Nordic governments, covering up to 35% of losses on individual loans.

IFC’s facility would comprise a fixed-repayment portion of at least 50%, amortised over five years following a five-year grace period, and a cash-sweep portion of no more than 50%, repaid annually through excess cash flows.

Renewable projects to span three African regions

Projects financed through REPP 2 will be located across East, West and Southern Africa, with exposure to any single region capped at 60%.

The financing is expected to contribute to the M300 initiative, which aims to provide electricity to 300 million people in Africa by 2030 through scalable clean-energy technologies.

IFC expects the investment to increase access to climate finance and electricity while reducing greenhouse-gas emissions.

Beyond individual projects, the corporation expects REPP 2 to demonstrate the viability of flexible debt financing for small and medium-sized renewable energy projects and encourage other fund managers to develop similar vehicles.

IFC aims to catalyze further investment

IFC’s role is expected to extend beyond providing capital. As an anchor investor, its participation could strengthen investor confidence in Camco’s strategy, governance and execution while helping attract additional capital during the fund’s future fundraising.

Existing investors have reportedly expressed additional demand for the senior loan tranche, with Camco willing to reduce their allocations to accommodate IFC’s proposed participation.

The investment remains subject to IFC approval, with no associated advisory engagement currently planned.