The African Development Bank’s (AfDB) Board of Directors has approved $8 million to support the Renewable Energy and Agriculture Modalities mini-grid program in Ethiopia.
Up to 50% of the capital expenditure funding for the pilot program will be sourced from the AfDB-managed Sustainable Energy Fund for Africa in the form of concessional loans, grants and risk mitigation.
The program was developed in collaboration with strategic investment body the Global Alliance for People and Planet (GEAPP) and Ethiopia’s Ministry of Water and Energy, Ministry of Irrigation and Lowlands, Ministry of Agriculture, the Agricultural Transformation Institute and other stakeholders. GEAPP will provide co-financing for the project.
“Water, energy and food are critical for our sustainable well-being,” stated Ethiopia’s Minister of Water and Energy Dr. Habtamu Itefa Geleta. “The Ethiopian government is approaching the twin challenges of agricultural productivity and energy access with an integrated approach.”
Serving as a first-of-its-kind approach to Africa’s mini-grid industry, the pilot program will test the commercial viability and effectiveness of integrating mini-grids with agribusiness operations at nine sites across Ethiopia.
