The Board of Directors of the African Development Bank approved, on Wednesday, March 25, the financing of USD 5.65 million for a project aimed at electrifying poor and isolated areas with decentralized solar solutions.

The AfDB's financing is intended to overcome obstacles to launching off-grid projects in these regions. According to the information released on the institution's official website, this is a repayable grant via the Sustainable Energy Fund for Africa (SEFA).

The operation aims to launch a new climate finance mechanism to fund the deployment of mini-grids in fragile states in Sub-Saharan Africa.

According to João Duarte Cunha, Director of the Renewable Energy Funds Division and the SEFA Fund, at the AfDB, « the lack of access to capital for rural electrification remains a major barrier to universal energy access on the African continent, particularly in countries plagued by conflict and fragility. This is the type of market stimulation needed to advance the goals of Mission 300. »

The mechanism will target 14 African countries, including the Democratic Republic of Congo, Niger, and Mali. It is expected to enable the installation of 71 MW of renewable capacity and the creation of approximately 240,000 new connections, benefiting 856,000 people, according to the AfDB.