The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has announced plans to provide $20 million to Nigerian off-grid electricity service provider, Daybreak Power Solutions, a subsidiary of Daystar Power. Group.
IFC’s $20 million investment consists of a $10 million local currency loan from IFC’s account, in addition to another $10 million subordinated loan from the Energy Program Canada-IFC Renewables for Africa.
According to a statement from Daystar Power Group, the investment is still pending regulatory approval by the IFC and, once approved, the funds will be used in a 40-meter Phase 1 capacity expansion project. millions of dollars.
Investment reflects IFC’s launch of the Climate Change Investment Program for Africa (CIPA), a sustainable energy financing and advisory program in sub-Saharan Africa, where demand for electricity and water is growing alongside the risks associated with climate change.
What you should know
Earlier this year, Daystar Power raised $38 million in Series B funding from stakeholders including the Danish DFI’s Developing Countries Investment Fund (IFU), STOA, an infrastructure fund with French impact, Proparco, the French IFD and Morgan Stanley Investment Management.
It was to expand its operations in its key markets of Nigeria and Ghana, while expanding to other countries in the region, including Ivory Coast, Senegal and Togo.
A report by ResearchGate indicates that long-term renewable energy will influence economic growth, providing energy security, green jobs that will contribute to sustainable growth and development in Nigeria. Moreover, the Nigerian government was looking in this direction when it launched the Renewable Energy Master Plan (REMP).
IFC is an international financial institution that provides investment, advisory, and asset management services to encourage private sector development in less developed countries.
The IFC, which was established in 1956 as the private sector arm of the World Bank Group, is headquartered in Washington, DC in the United States and is expected to advance economic development by investing in commercial and nonprofit projects. for poverty reduction and promoting development.