UK, others offer $350m for Africa’s solar energy
Image source: New Telegraph
France, The Netherlands and the United Kingdom have committed $350 million to invest in solar energy in Africa and electricity storage, Afrik21 reported at the weeknd. It is a strategic investment at a time Africa is relying on renewable energy to provide access to electricity for its population.
Countries in sub-Saharan Africa will benefit from new funds to improve electricity supply. It is a $350 million commitment from France, The Netherlands and the United Kingdom. The latter will provide the greatest effort.
The Dutch Government plans to invest $44 million. The funds will be used to finance solar off grid in sub-Saharan Africa. It is a widely used solution in several countries, which aims to compensate for the weakness of national electricity grids.
The Dutch funding will make it possible to provide off-grid to households, companies or public institutions. For households in rural areas, solar home kits are often preferable.
The system is quite widespread, thanks in particular to private companies that are surfing on the “mobile money” trend, the mobile phone payment solution that is available almost everywhere, even in remote areas.
For its part, France, through the French Development Agency (AFD), plans to inject 55 million dollars. The funds will be allocated to independent private investors (IPPs), who are developing small solar projects across the African continent.
In concrete terms, through the African Trade Insurance Agency, the AFD will provide guarantees to IPPs on their projects.
The $100 million provided by France and The Netherlands is part of the Solar Risk Mitigation Initiative (SRMI). It is a joint initiative of the World Bank and the French Development Agency (AFD) to mitigate the risks associated with solar projects in Africa.
The ultimate objective is to address the political, technical and financial issues related to the increased deployment of solar energy, particularly in some low-income countries.
On its part, Great Britain promises even greater investment with the allocation of up to $250 million to middle-income countries around the world.
Source: New Telegraph