Image: The African Development Bank (AfDB)
The African Development Bank (AfDB), the European Union, KfW, the Clean Technology Fund, Norfund and others have pledged $160 million for the Facility of Energy Inclusion (FEI), order to boost electricity connectivity in Africa through the usage of small-scale solar systems and mini-grid schemes.
The Facility of Energy Inclusion – managed by the LHGP Asset Management Group – is a $400 million program aimed at increasing access to utilities by funding small-scale clean energy ventures. The program, funded by the AfDB, serves as a lending mechanism for offering financial assistance to novel electricity access solutions.
“After three years of hard work, we are pleased to see the second and larger piece of our energy access debt funding platform FEI up and running on the back of very significant commitments from our partners. We look forward to seeing FEI catalyze financing for new energy sector business models and accelerate our efforts to electrify Africa,” said Acting Vice President of Power, Energy, and Green Growth at the AfDB, Wale Shonibare.
Notably, the facility serves and supports small scale independent power producers who deliver power to mini-grids and captive power projects. The main aim of the facility is to provide help to the sub-Sharan African countries where access to electricity is very low.
The new programs will be introduced in Burundi, Cape Verde, Madagascar, Malawi and Mozambique.