Dakar, Senegal, December 5, 2023 – Senegal Fonds Souverain d’Investissements Stratégiques S.A. (FONSIS, the Sovereign Wealth Fund of Senegal for Strategic Investments) and the Africa Climate Foundation (ACF) have launched a strategic and meaningful partnership to establish the Renewable and Efficient Energy Fund. GGGI was instrumental in facilitating this partnership and will support both institutions in implementing this initiative. At the FONSIS Headquarters, FONSIS signed a USD 100,000 agreement with ACF in the presence of FONSIS Director General, Mr. Abdoulaye Diouf Sarr, ACF Senior Research Advisor, Mrs. Kelly Easton, and GGGI Country Representative, Mrs. Assana Magagi-Alio. The funds will be used for conducting market studies and feasibility assessments to support the structuration and operationalization of the REEF.

The Renewable and Efficient Energy Fund (REEF) is a specialized funding mechanism designed to support the development of small-scale Renewable Energy and Energy Efficiency projects in Senegal. The primary objective of this initiative is to provide subordinated debt to such projects, enabling them to secure financing from local commercial banks. REEF is an innovative solution that seeks to address the financial barriers private companies and sponsors face when undertaking renewable energy and energy efficiency activities in Senegal. The REEF creation process was launched on October 12, 2017, in Dakar, Senegal, jointly by AfDB, FONSIS, and GGGI.

The REEF implementation aims to accelerate the development of renewable energies and energy efficiency, with a global fundraising target of USD100 million via the private sector while achieving the NDC targets and just energy transition for Senegal.