- U.S. International Development Finance Corporation (DFC) is America’s development finance institution.
- DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today.
- They have announced funding for Mozambiques first wind energy project.
A loan of up to $99 million to Central Eléctrica da Namaacha, along with $80 million in political risk insurance to Globeleq Africa Limited, will support the development, construction, and operation of a 120MW wind power project in Mozambique. The first wind power project in the country will increase the supply of low-cost clean electricity for the national grid and regional markets to support greater access to reliable energy.
The London-based independent power producer Globeleq (an institution formed by Norwegian and British funds) will start construction, in the second half of the current year, in Namaacha district, in the southern province of Maputo. The plant, budgeted at 270 million US dollars, will increase the amount of energy exported by the publicly-owned electricity company, EDM.
Of the overall investment, 230 million dollars will go towards the construction of the plant and power generation, while the remaining amount will be invested in the construction of a 40 kilometer transmission line linking the districts of Namaacha and Boane.
Other projects funded in Africa by DFC
A $40 million equity investment in Helios CLEAR Fund SCSp will help fund climate-focused growth businesses, scale and accelerate green initiatives, protect livelihoods from the effects of climate change, and support Africa’s contribution to global net-zero goals.
A $180 million loan to Acorn Master Finco One LLP will finance the construction and operation of new, EDGE Certified and affordable student rental housing in Nairobi and across Kenya. The financing will allow Acorn to expand its portfolio of affordable student housing in Kenya from 20,000 beds to close to 70,000 beds. With early-stage support from USAID and Prosper Africa, the transaction represents a whole-of-U.S.-Government partnership with Kenya’s private sector.
Author: Bryan Groenendaal
