Green-for-Access First Loss Facility (G4A)
Blended finance platform unlocking local currency lending for energy access, productive use of energy and e-mobility across Sub-Saharan Africa.
Projected Impacts
The Green-for-Access First Loss Facility (G4A) is a risk mitigation facility that partners with local financial institutions across Africa to facilitate local currency lending at affordable rates directly to consumers (MSMEs, smallholder farms, taxi drivers, delivery riders and households) for the purchase of clean energy technologies, productive use appliances and electric vehicles.
G4A offers two products:
- For Commercial Banks: a physical cash-deposit fund placed with local lenders to cover up to the first 20% of losses across a portfolio of energy access loans.
- For Non-Bank Financial Institutions (NBFIs): a junior loan totaling 20% of portfolio value, with a forgiveness feature that effectively covers the first 20% of portfolio losses.
By absorbing first-loss risk through these two mechanisms, G4A makes it commercially viable for banks and microfinance institutions to lend in local currency to underserved borrowers. G4A is structured as a USD 100 million 12-year fund, designed to leverage nearly USD 1.8 billion in energy access investment.
Now completing its pilot phase with support from the IKEA Foundation and CLASP, G4A has active portfolios with three local lenders in Nigeria and Kenya. The planning stage of G4A was supported by a grant from the Partnering for Green Growth and the Global Goals 2030 (P4G) program. In 2022, G4A received the Keeling Curve Prize in the Finance category from the Global Warming Mitigation Project.
Case Studies
- Green-for-Access First Loss Facility (G4A)
Green-for-Access First Loss Facility (G4A)
- Green-for-Access First Loss Facility (G4A)
Groundbreaking Electric Motorcycle Financing Program Launches with 600+ Units Backed by Green for Access Fund Guarantee
