Adapting risk protection to investor realities.

The energy projects necessary to meet this demand, regardless of their scope, all have two things in common: For one, their success depends on mitigating the political and offtake risks that primary insurers have so far been unable to adequately cover.

For two, these risks can effectively be covered with the extra capacity that the African Energy Guarantee Facility (AEGF) expressly makes available to insurers.

Finally, bankable projects that generate secure ROIs.

What sets AEGF-backed insurance products apart is not just the fact that they are targeted at the risks specific to energy projects. Because they can be customized to provide as surgical or comprehensive cover, they also offer a more transparent and cost-effective foundation on which to build reliable, long-range returns.

The AEGF ‘shield’ can be tailored to cover the entire project or specific stages, including risks of transfer restrictions (including currency inconvertibility), expropriation, nationalization, war and civil disturbance, but also breach of contract, e.g. offtaker default, sovereign or sub-sovereign non-payment under a power purchase agreement (PPA).