Ouagadougou, October 13-14, 2020 – The Global Green Growth Institute (GGGI) organized a workshop on the establishment of a National Financial Vehicle (NFV) to exclusively support the renewable energy sector. The main objective of the workshop was to share information on the initiative, gather information, and share experiences with the relevant stakeholders in the renewable energy sector in Burkina Faso.
Sixty eight (68) representatives from Government institutions (relevant ministries and national funds), Financial Institutions (twenty-seven representatives of banks, micro-finance, and insurance), and private renewable energy companies attended the workshop, which consisted of three (3) sessions dedicated to each type of stakeholders.
The workshop aimed to:
- Present GGGI and its support role in Burkina Faso
- Remind stakeholders of the current context of the fight against global warming
- Present the mechanisms and the opportunities of climate finance, in particular the Green Climate Fund
- Share information on the National Financial Vehicle (NFV) project
- Gather information on the current needs of the renewable energy market in Burkina Faso
The following main points were raised through discussions and experiences:
- The NFV institutional arrangements and its institutional anchorage
- The difference between NFV and banking
- The difficulties for financing renewable energy projects linked to the maturity period of the loans and the related uncertainty
- The necessity to consider the NFV as a financial instrument to de-risk the projects to facilitate interventions of the banking sector
The participants expressed their interest in the initiative which could present an opportunity to mobilize more green financing for the renewable energy sector in Burkina Faso. They requested their involvement in the remaining steps of the process.
The next steps will be focused on the processing of data collected during the workshop, the collection of additional data and information, and the development and the validation of the pre-feasibility report.