AfDB Funds Prep for 317 Solar Minigrids in Togo

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  • The African Development Fund (AFD) will finance the preparatory phase of a rural electrification project in Togo which wants to develop mini-grids in 317 localities.

The financing consists of a €2.73 million loan from the AFD – the loan window for preferential rates from the AfDB – plus a $1m grant from the Sustainable Energy Fund for Africa (SEFA).

The project will see the Togolese government prepare to develop green mini-grid projects by setting up mini-grid project companies upstream. The state will be able to provide, in parallel with the private sector, an equity contribution to these mini-grid project companies. It will also be able to provide technical assistance to said companies through building the capacity of a project executing agency.
This first phase of the project paves the way for a successful implementation of the downstream investment phase, during which the AfDB, SEFA and other donors will finance the projects through concessional resources. They will thus stimulate the participation of the private sector, which should contribute up to 30% of the investment project in Togo’s green mini-grids.

“By boosting private sector financing and improving both electrification and climate resilience, the project will have a positive impact on the most vulnerable groups in rural areas in Togo,” said Wilfrid Abiola, Country Manager of the African Development Bank in Togo.

Robil Nassoma, director general of the Togolese Energy Agency, said: “With this new project and funding from the African Development Bank, we share a strong ambition, that of electrifying 317 rural localities. The Bank’s support will help catalyse private sector financing to make electricity available in the target areas served in Togo’s five regions.”

Dr Daniel Schroth, Director of the AfDB’s Renewable Energy and Energy Efficiency Department said the Bank supports Togo’s objective of achieving universal access to energy by 2030 through the project loan.

“This project will increase economic growth and reduce the negative impact on the environment, by increasing renewable energy in Togo by catalysing investments in the private sector in access to clean and sustainable energy for the underserved rural population of Togo,” said Schroth.

Author: Theresa Smith

 Theresa Smith is a conference producer for Vuka Group.

This article was originally published on ESI Africa and is republished with permission with minor editorial changes.




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