The UN Green Climate Fund (GCF) has committed $80m (€69m) seed capital to a new Sub-Saharan Africa renewable energy fund managed by DWS.

DWS, Deutsche Bank’s asset management arm, said it expects to make a 3% contribution to the fund which seeks to raise $500m.

The vehicle, which has GCF as anchor investor, targets investments in innovative energy solutions to support the de-carbonisation of energy production for industry and households in Sub-Saharan African countries which have confirmed their support for the programme.

Henry Gonzalez, the director of GCF‘s private sector facility, said decentralised renewable energy is an essential solution on the African continent to ”reduce emissions in developing rural economies” and to realise economic and social co-benefits.

“GCF is happy to act as the anchor investor in the program and looks forward to a productive partnership with Deutsche Bank in catalyzing private investment for climate action.”

Andrew Pidden, the head of sustainable investments at DWS, said: “We remain committed to deliver on the GCF’s objectives and invest in a growing market, such as Africa, that is yet able to avoid using carbon-based energy sources as a primary basis for energy production.

“The program will leverage the full capacity and experience of our Sustainable Investments team to manage blended finance vehicles as recognised by the OECD as effective tools to support transitions into more sustainable economies.”

Kamran Khan, Deutsche Bank head of ESG for Asia Pacific, said: “Blended finance can have a catalytic impact on sustainable growth in emerging markets.

”Focused, commercially viable investments in developing economies like Sub-Saharan Africa require deep sector/regional experience and world-class impact investment expertise. We are proud to play a role in bringing the world’s largest climate fund to invest at scale in renewable energy to create a more sustainable future for Sub-Saharan Africa and contribute to regional economic growth.”

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