Good news for renewable energy providers operating in Africa. These companies have the opportunity to participate in an initiative by the US Development Finance Corporation (DFC) to finance solutions that accelerate access to electricity in developing countries. The call for expressions of interest is for micro and mini-grid providers, solar home systems and distributed energy generation.
DFC’s call for applications is in line with its ambitions for developing countries. The US government’s financial institution wants to help electrify 10 million people by 2025. “The call for applications will allow us to identify private sector-led projects that need financing tools to increase access to reliable and affordable electricity in developing countries around the world,” says David Marchick, DFC’s chief operating officer.
The $100 million funding
The DFC initiative is supported by other players in the African electrification process, including the Rockefeller Foundation and the Shell Foundation. Successful off-grid providers will receive a total of USD 100 million from 2022. The investments can be used for business expansion, working capital and growth capital.
According to DFC, special consideration will be given to projects that provide energy solutions related to the response to Covid-19, such as projects providing electricity to health facilities, and those that advance DFC’s 2 X Women’s initiative by promoting women’s economic empowerment.
DFC’s call for applications is also part of the Power Africa initiative launched under the Obama administration with the goal of supporting the electrification process in Africa. Companies interested in the DFC’s call for expressions of interest have until June 18th, 2021 to apply.
Jean Marie Takouleu