The deal was sealed in early December, and present to the agreement signature were Ghana's President John Dramani Mahama and Thomas Wimmer, the the German Deputy Head of Mission of the German Embassy in Accra, Ghana.
The deal specifies that DCH-Solargiga and SADA will own 90% and 10% equity interest respectively in the joint venture. Furthermore, according to the agreement, the joint company will firstly develop 40 MW of solar PV plants and proceed to the next project phase later aiming total capacity of 200 MW.
Hsu You Yuan, Executive Director and CEO of Solargiga, said facing the imposition of U.S. and EU tariffs and countervailing anti-dumping duties on Chinese products, the company is now looking to expand to high growth potential international markets. "Thanks to growing market demand, coupled with the government's supportive policy, we believe that the African market enjoys huge potential," he added.
Specifically Ghana, Hsu You Yuan said "is a democratic and viable state in Africa with a fast-growing economy. Electricity demand has seen rapid growth in Ghana, and green energy and environmental policies are a core focus of President Mahama."
Solargiga's move to Ghana will lead to one of the first big solar PV projects in Sub-Saharan Africa. Also, around 598 million Africans have no access to electricity, and many rely on dangerous kerosene lamps.
Ghana particularly though is seen as one of the most attractive markets in Sub-Saharan Africa because of its growing economy, the investment-friendly business climate and the government's devoted support in developing solar PV.
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