A new Danish investment fund to boost development of renewable energy in Africa will see another benefactor coming onboard. Tryg will inject $9.5 million in the Di Frontier Market Energy & Carbon Fund to be dispersed throughout Kenya, Mozambique, South Africa, Tanzania, Uganda, and Zambia for eight to 12 major projects using various types of energy technologies and efficiency methods.
“We view renewable energy in Africa as an interesting investment opportunity,” Head of Investments Mads Hørberg said.
Eight foreign and Danish investors are behind the Fund, including the British Commonwealth Development Corporation, the EU Fund, Global Energy Efficiency and Renewable Energy Fund (GEEREF), which is managed by the European Investment Bank as well as the Investment Fund for Developing Countries (IFU).
Hørberg added: “The Fund has a time horizon of 10 years so it will be a long-term process. I see a good balance between return and risk and we expect that this investment will yield a much higher return than other capital investments. Tryg’s investment in the Fund is limited. However, it is a good opportunity for us to find ways to combine business interests with efforts to promote sustainable energy solutions.”
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