The most significant expected project-level outcomes are increased access to climate finance and electricity, and reduced GHG emissions. Beyond the Project level, IFC anticipates that the project will promote greater competitiveness through demonstration and replication channels, by establishing the viability of a flexible multi-instrument debt fund model for small and medium RE projects in SSA and catalyzing other fund managers to launch funds with comparable features.

IFC’s additionality through the Project is primarily non-financial, and its role as an anchor investor is expected to give comfort to concurrent investors and attract future ones. IFC’s participation is expected to reassure investors by mitigating perceived non-commercial risks and signaling confidence in Camco’s strategy, governance, and execution. This support is expected to strengthen Camco’s next fundraising phase. Although existing investors have expressed additional demand for the senior loan tranche, Camco is willing to reduce their allocations to accommodate IFC, underscoring the strategic value of IFC’s involvement.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of funds targeting small- and medium-sized renewable energy projects in SSA	#		Not Available	Not Available	Not Available
Outstanding volume of climate finance loans
Renewable Energy Installed Capacity	MW		Not Available	Not Available	Not Available

The E&S category rating for this project is FI-1, as some subprojects in the Fund’s pipeline are classified as high risk. Some potential sub-pipeline projects identified at this stage are in Key Biodiversity Areas, and one potential sub-pipeline project is in an Alliance for Zero Extinction (AZE) site. For these pipeline projects, the Alliance for Zero Extinction (AZE) and Avoid, Reduce, Restore, and Conserve (ARRC) Task Force has been engaged and has provided no objection. The applicable IFC Performance Standards (PS) at appraisal were PS 1 (Environmental and Social Risk Management), PS 2 (Labor and working conditions), PS 3 (Resource efficiency and pollution prevention), PS 4 (Community health, safety and security), and PS 6 (Biodiversity conservation and sustainable management of living resources). Once the full portfolio is determined, PS 5 (Land acquisition and involuntary resettlement) may apply where relevant. The portfolio is still being finalized, with the Fund Manager undertaking E&S due diligence and, where required, Environmental and Social Impact Assessment (ESIA) studies for some projects.

The Fund Manager's Environmental and Social Management Framework (ESMS) indicates that the Fund does not support investments in Category A projects and prohibits finance of any kind for projects located in Critical Habitat. However, IFC’s review of project-level reports found that some proposed pipeline projects are located in Critical Habitat. Where projects are located in Critical Habitat, project design should be informed by a Critical Habitat assessment and supported by a Biodiversity Action Plan (BAP) and a Biodiversity Monitoring and Evaluation Plan (BMEP) to ensure compliance with PS6. The biodiversity risk screening checklist/procedure should be updated to enable early identification of overlap with UNESCO Natural and Mixed World Heritage Sites and AZE sites so that projects in these sites are avoided.

Although some potential sub-pipeline projects are Category A/FI-1, the IFC E&S team concurs that the ESIA studies, biodiversity management plans, and other relevant risk management plans provided are of acceptable quality and are supported by IFC for this investment. For alignment, the Fund Manager is to amend its ESMS to strengthen the assessment and management of Category A/FI-1 projects, subject to approval through the Fund Manager's applicable governance process and without creating a general obligation to finance Category A projects. IFC’s investment in the Fund will, at this stage, be limited to Category B/FI-2 projects until the ESMS amendment is completed.

Regarding supply chain risks in renewable energy projects, the Fund Manager has a guideline requiring portfolio companies to implement a Supply Chain Procurement Policy (SCPP) to uphold labor and human rights. Risks associated with sexual exploitation, abuse and harassment (SEAH) are included in the Fund Manager's risk assessment processes as set out in the ESMS. Portfolio companies are to establish a Code of Conduct for all staff defining appropriate behavior and consequences for breaches.

Reputational and Residual Risk screening of the Fund Manager did not indicate any E&S-related risks or media criticism.

The Fund Manager is a first-time IFC client and has an Environmental and Social Management System (ESMS) to identify and assess E&S risks and impacts from its investment activities, in line with its E&S Management Framework (the ESMS). The framework aligns the Fund Manager's Environmental and Social Safeguards Policy with international standards, including the IFC Performance Standards, UN Global Compact principles, and the Global Climate Fund (GCF) E&S framework. The ESMS provides a structured approach to identifying, managing, and mitigating E&S risks, including application of the mitigation hierarchy and an Exclusion List aligned with IFC’s. At the investee level, Camco requires investee companies to have an ESMS with risk identification, assessment, and monitoring procedures; where necessary, an Environmental and Social Impact Assessment (ESIA) must be conducted and relevant management plans provided.

The Board, which includes the Sustainable Business Committee, monitors the social, ethical, and sustainability performance for Camco, its subsidiaries, and funds. The Fund Manager Investment Committee oversees investment and portfolio performance and ensures risks are assessed before investment decisions. The Fund Manager's Impact Team oversees ESMS implementation across the portfolio. External advisors (E&S consultants) are engaged as needed for due diligence, audits, specialist studies, and ongoing monitoring. A Grievance Mechanism operates at both the institutional fund level and the project-specific level.
The Fund Manager has appropriate Human Resources (HR) policies in place.

As part of this Project, the Fund Manager will be required to enhance the ESMS by implementing actions as detailed in the Environmental and Social Action Plan (ESAP) as drafted by the IFC. The Fund Manager will be required to provide the first three environmental and social due diligence (ESDDs) reports and E&S action plans prior to the Fund Manager’s investment in the associated projects, with it being understood that such review is consultative and does not establish an additional IFC approval requirement.

S.no	Title	Anticipated Completion Date
1	Amendment of the Environmental and Social Management Framework.	05/31/2027
2	Enhancement of E&S Capacity	12/31/2026
3	Enhancement of E&S Capacity	09/30/2026
4	Critical habitat assessments, residual impact assessments and mitigation plans at sub-project level.	12/31/2026
5	Portfolio projects situated in AZE sites	06/30/2027