Policy paper

African Union Commission and Global Clean Power Alliance finance mission: action plan

Updated 14 November 2025

The Global Clean Power Alliance (GCPA) Finance Mission is a timebound initiative, backed by a coalition of donor countries, philanthropies and delivery partners^{[footnote 1]}.It is designed to respond to specific requests for assistance from its Emerging Markets and Developing Economies (EMDE) partners, collaborating with them to ensure they have the right people, tools and capabilities to undertake high quality energy investment planning^{[footnote 2]}, and to build a pipeline of bankable projects to accelerate the implementation of clean energy transition goals.  

The African Union Commission (AUC) is the executive and administrative arm of the African Union. The AUC is responsible for developing continental policies/programmes as well as to assist AU Member States in their implementation. The AUC further works to elaborate, promote, coordinate and harmonise the AU’s programmes and policies with those of the Regional Economic Communities (RECs). The Infrastructure and Energy Department (IED) oversees programmes and initiatives critical to achieving the Agenda 2063 aspirations. The Program for Infrastructure Development for Africa (PIDA) launched in 2012, provides a common framework for African stakeholders to build the infrastructure necessary for integrated energy, transport, ICT and trans-boundary water networks to boost trade, spark growth and create jobs. In addition, the Department is working with the AU Member States and regional institutions on the implementation of the African Single Electricity Market (AfSEM), a flagship project under the Second Ten-Year Implementation Plan of Agenda 2063 and its blueprint, the Continental Master Plan (CMP), an initiative that drives energy access and regional interconnectivity by strengthening the capacity of regional institutions including power pools, regulators, and national bodies and ensuring that AfSEM objectives are aligned with countries’ Nationally Determined Contributions (NDCs).

With this in mind, and in response to the AUC’s request for collaboration in the clean energy sector, the GCPA Finance Mission and its partners commit to making the fullest and best endeavours to implement the following initial set of priority actions through to COP32:

1. Multi-level private finance readiness diagnostic: GCPA Finance Mission delivery parters will undertake a bespoke multi-level diagnostic of the African Union’s overall private finance readiness across its priority activities to help inform future AUC priorities for this work programme. This will include assessments of challenges and opportunities across private finance and insurance, derisking and risk sharing through public finance, financial analysis and modelling and legal readiness.

2. Private finance capacity and capability-building:

a. In response to specific requests, provide dedicated locally sourced and internationally supported private finance experts to work within the AUC structures to support the delivery of AUC clean energy investment planning processes (including on bringing private finance into the energy sectors and technologies of interest), and to help coordinate and align GCPA Finance Mission support most effectively in line with AUC strategies

b. Design and implement a bespoke set of continuous training programmes for policymakers, regulators, utilities and private finance practitioners to help plug capability gaps, share best practice and lessons learned effectively in line with the best and most appropriate global standards

c. Work to establish dedicated permanent private finance institutional capability (e.g. an AUC Green Finance Institute) within the AUC that can become a globally networked, supported and readily deployable centre of excellence for clean energy investment planning and project preparation

3. Project readiness, bankability support:

a. Provide bespoke expert scrutiny, feedback and recommendations on the AUC’s priority clean energy projects within the PIDA Priority Action Plan II; and the Power System CMP

b. Agree a short-list of these priority clean energy projects for focused and tailored project readiness and bankability support^{[footnote 3]} with a view to rapid progression towards Final Investment Decision (FID)

4. Regional Electricity Integration private finance support:

a. Provide demand-responsive capacity building support on regional power pools, regional regulatory authorities, and share lessons on interconnectors and regulatory environment for mobilisation of private finance on transmission projects in line with the AfSEM’s plans to de-risk the continent Electricity sector

b. Share public and private experience and lessons on energy markets and the private sector as relevant to the Continental AfSEM

c. Independent Power Transmission Systems (IPTS) Framework Development: In collaboration with the AUC, the GCPA Finance Mission will support the design of a continental framework for private sector participation in IPTS. This framework will outline regulatory, financial, and operational guidelines to enable private capital investment in transmission infrastructure while ensuring fair returns, open access, and long-term system reliability. This initiative will enhance private sector confidence, accelerate the build-out of regional transmission corridors, and support the cross-border electricity trading envisaged under the AfSEM

5. Investment and De-Risking Mechanisms:

a. Conduct a comprehensive de-risking assessment for the electricity market in Africa, identifying barriers to private and blended finance participation

b. Support the development of market-linked investment pipelines for regional interconnectors and clean energy projects under CMP, targeting early-stage bankability support through the GCPA Finance Mission

c. Support the development of a Continental Energy Security Framework (CESF) to underpin AfSEM and CMP implementation, ensuring resilience to global supply shocks and climate risks

d. Assess and enhance the development of the Africa Renewable Energy De-Risking Facility and regional capacity for geothermal resource mapping, exploration, and investment preparation

6. South-South private finance learning: Establish and facilitate bespoke bilateral or plurilateral workshops, trainings, visitations or similar such mutual learning opportunities and mechanisms between South-South partners on priority topics for the AUC and its members, including, but not limited to:

a. Unlocking private finance behind regional power pools and cross-border grid interconnection and integration projects

b. Successful private finance mobilisation behind priority African Union renewable generation projects identified under (3)

c. Country Platform design

The GCPA Finance Mission will coordinate and deliver the activities, working with the Green Finance Institute and World Bank in close partnership and with AUC nominated local partners. AUC will designate the focal person(s) for this Programme. At all times, the GCPA Finance Mission will work in spirit of equal partnership, collaboration and respect with the AUC. The GCPA Finance Mission will always endeavour to work flexibly with AUC’s existing activities and delivery partners to ensure its activities are well coordinated, additive and complementary. The GCPA Finance Mission will always seek to mobilise and work with local expertise, resources and capacities wherever possible.

This Action Plan will remain a live document, with opportunity to update the details, scope and breadth of support as work unfolds and in accordance with demand from the AUC. A formal review and update of this Action Plan will take place by COP31.

1. See Global Clean Power Alliance: organisations finance statement - GOV.UK ↩

2. In line with the GCPA Finance Mission’s Roadmap on High Quality Energy Investment Planning. ↩

3. Subject to the expert scrutiny, feedback and recommendations, this support could include any or all of the following support activities: formal market soundings to provide bespoke project bankability assessments and recommendations; support applications to sources of concessional finance where needed; legal contracting; EIAs; licensing support; financial modelling; establishing rates of return; late-stage feasibility studies, financial instrument design, and more. ↩