MySol Grid Zambia, a subsidiary of Engie Energy Access, has successfully secured a loan of $7.5 million to facilitate the off-grid solar electrification of 40,000 individuals in Zambia. The funding for this initiative is being provided by the Facility for Energy Inclusion (FEI), a mechanism established by the African Development Bank (AfDB) to support electrification projects in Africa.
This achievement marks a significant milestone for MySol Grid Zambia, which operates under the umbrella of the French company Engie Energy Access. The $7.5 million financing comprises senior debt obtained from the FEI and will be instrumental in advancing the company’s operations in Zambia. The funding supports the construction of 60 solar photovoltaic mini-grids across the country.
Gillian-Alexandre Huart, the CEO of Engie Energy Access, expressed his satisfaction with the attainment of long-term, non-recourse debt financing for mini-grid projects. This achievement highlights the viability of the business model and reinforces the credibility of renewable mini-grid initiatives within the context of rural electrification. The financial support from the FEI will contribute to the realization of the United Nations Sustainable Development Goals (SDGs).
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The primary objective of the electrification efforts in Zambia is to provide access to reliable, sustainable, and modern energy at an affordable cost, in alignment with MDG7. MySol finances, installs, and operates solar panel systems integrated into containers, which also house batteries for electricity storage. These containerized plants establish mini-electricity grids capable of supplying power to local communities. With the assistance of the FEI funding, MySol aims to establish an installed capacity of 5 MW.
The project is expected to bring electricity to at least 40,000 people, as well as small businesses and shops situated in rural areas. This initiative aligns with the 11th European Development Fund’s Improving Access to Electricity and Renewable Energy Programme (IAEREP). MySol received a €6 million grant from the European Union (EU) under the IAEREP program a few years ago. By expanding the adoption of off-grid energy solutions in Zambia, this program will create economic and social opportunities for families and small businesses that are unable to connect to the national grid, according to Engie Energy Access.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard