EU and AFD Group boost the Energy Transition and support Private sector investment

The AccelerET guarantee, backed by €164.5 million from the European Fund for Sustainable Development Plus (EFSD+), will address financing gaps for energy and mobility operators in Sub-Saharan Africa, Asia, and the Pacific, fostering investments and improving governance in these critical sectors.

The Choose Africa VC program will receive a €44.1 million EU guarantee to reduce capital loss risk for Proparco's €104 million equity portfolio, supporting venture capital funds and early-stage African start-ups, particularly in fintech and renewable energy. The program also includes €3.1 million in EU-funded technical assistance.

Meanwhile, the Liquidity Accelerator Fund (LAF) will receive €19.2 million in EU guarantees to support secondary investments in funds across Africa, Asia, and Latin America. This initiative aims to help investors exit funds early, providing attractive returns while managing risk.

These programs reflect the EU and AFD Group’s commitment to sustainable development and fostering innovation in emerging markets.

Jozef Sikela, Commissioner for International Partnerships, said: “The green transition and reliable energy supplies for the African population is not just a European priority—it is a global necessity. Through this agreement, we are strengthening our commitment to Africa’s sustainable future by unlocking critical investments in clean energy, mobility, and entrepreneurship. With these targeted financial guarantees, we are enabling African and European businesses to together lead the way in the green transition, creating jobs, fostering economic resilience, and ensuring sustainable growth. This is what the Global Gateway is about—building strong, long-term partnerships that deliver real impact for both Africa and Europe.”

Rémy Rioux, Director General of AFD Groupe, stated: “We are excited to collaborate with the European Union on these guarantee programs, reinforcing our joint efforts to support both public and private sectors globally. The AFD Group and the EU are demonstrating the breadth of our initiatives. The AccelerET program will assist countries in transitioning to decarbonized, resilient energy systems, aligned with the Paris Agreement, and will foster better governance and a more attractive environment for private investment. Additionally, the Choose Africa VC program, led by Proparco, will support innovative African SMEs through direct investments and venture capital funds. With EU backing, Proparco will also launch the Liquidity Accelerator Fund, aimed at sustaining small and mid-scale Private Equity in emerging markets, particularly in Latin America, to bolster SME growth.”

Background

About EFSD +
The European Fund for Sustainable Development Plus (EFSD+) was established in June 2021 and offers EU partner countries support for key investments, using EU grants or financial guarantees. In this way, the EU mobilises additional financial resources for sustainable development from the public and private sectors. The EFSD+ has €39.8 billion in guarantee capacity for the period 2021 to 2027 globally, of which €22.5 billion will be used in the EU’s Enlargement and Neighbourhood regions.