Pending final closing, the Electrification Financing Initiative has announced it is considering private equity investments of €1.5 million to two French firms operating in Benin, Togo, Burkina Faso and Senegal, and $1.5 million to a Tanzanian business operating in Tanzania and Uganda.
The $40 million projects will be the country’s first large scale solar-plus-storage project.
With a previous 50-50 split between equity and debt investment funding for the off-grid market lurching to 84% borrowing, and commentators stating most of this year’s backing was agreed before the onset of Covid-19, fears are mounting about the prospects for the sector.
The Senegalese government is aiming to increase access to solar power in rural areas by reducing VAT on PV panels, inverters, solar thermal collectors and other products in an effort to achieve universal electricity access in the country by 2025.
The Economic Community of West African States should prioritize the development of solar PV to meet surging energy demand over the next 30 years, according to a newly published study.
Illegally re-badged panels were sold on to Senegal, Burkina Faso, Nigeria, Morocco, Mauritania, Turkey and even Syria. Italian authorities found 60 tons of panels which will be examined.
French thinktank the Institut Montaigne says Africa is absent from the global solar revolution for several reasons including a lack of suitable financing tools, the small size of projects and a systematic recourse to tendering. Removing artificial price signals set by ever more competitive tenders could be a step towards a more mature market, ready for large scale solar tenders.
The African Development Bank last year disclosed a plan to install 10 GW of solar in the deserts of the Sahel. A recent summit held in Burkina Faso may have brought the ambitious project a step closer.