NEWS

The European Investment Bank (EIB) has agreed a €10m ($10.2m) local currency loan backing the deployment of 107,000 solar home systems in Benin by Engie Energy Access. The systems are expected to provide power to around 643,000 people. The EIB has already financed Engie Energy Access’ operations in Uganda and Benin is the sixth African country to receive funding from the bank for off-grid solar projects (AE 421/12).

The EIB said more than 1m households in Benin rely on kerosene or candles for lighting. Less than one in five people in rural or remote communities have access to reliable electricity, while only 10% of households use off-grid products. Engie Energy Access provides systems which can be paid for at less than $0.2/day (AE 453/16). The EIB facility will allow debt taken on to purchase equipment in dollars to be repaid in local currency. Currency can be a significant challenge for off-grid companies, which purchase equipment internationally but are paid in local currency.

EIB vice president Ambroise Fayolle said “vulnerable communities across Africa are being impacted by global energy shocks triggered by Russia’s invasion of Ukraine and so improving access to affordable and clean energy is even more important to fight poverty, create jobs and empower women and girls.”

The deal is part of the European Union’s Green Deal for Africa, as well as now falling under the EU’s Global Gateway strategy.