- The Eastern and Southern African Trade and Development Bank (TDB) has launched a US$ 75 million TDB SME Off-Grid Facility’ with the objective to facilitate access to debt financing to SMEs, primarily targeting renewable energy SMEs in the off-grid energy sector, as well as SMEs in the broader infrastructure value chain operating in the region served by TDB.
- The facility will preserve household economic activity in the short-term and support firm productivity in the medium-term by enhancing the liquidity of SMEs involved in infrastructure value chains affected by the COVID-19 crisis.
The TDB SME Off-Grid Facility will prioritize infrastructure projects with significant development impact and high private sector mobilization potential, and will have stringent E&S eligibility criteria.
Primary beneficiaries of the facility will be private firms and entities in TDB Member States involved in the supply, construction, and operation of infrastructure projects. Ultimately, selected project seeks to provide communities with access to improved, reliable, and affordable electricity, efficient transport and logistics services, and other social and economic infrastructure at the same time as enhancing security of energy supply, creating jobs, and reducing greenhouse gas (GHG) emissions.
This initiative is supported by the US$ 415 million World Bank Regional Infrastructure Finance Facility (RIFF) signed with TDB in 2020 – the first of its kind to be extended to a regional development bank by the World Bank’s International Development Association (IDA). Through this facility, TDB will finance long-term infrastructure projects, particularly in renewable energy, including those of MSMEs in need of debt financing in the off-grid energy sector.
Author: Bryan Groenendaal