The Development Bank of Southern Africa (DBSA) has committed project funding to Ignite Mozambique, a local company that aims to supply solar home systems in rural Mozambique.
The DBSA made the announcement during the Global Off-Grid Solar Forum and Expo 2020, on Thursday, adding that it would also be the lead arranger for the debt funding for Ignite Mozambique’s endeavour to connect 1.8-million people to clean power.
Currently, the World Bank estimates 70% of the Mozambique population is without electricity in their homes, which hinders economic prosperity, proper education and leads to massive health and fire hazards.
DBSA project preparation division group executive Mohale Rakgate said the bank’s investment consists of a structured project preparation facility that will allow Ignite Mozambique to grow its portfolio to demonstrate the requisite track record to become commercially bankable.
“Together we aim to connect 300 000 households in off-grid areas in Mozambique. This facility will anchor DBSA as a long-term partner to support this project through their development efforts in scaling up this highly impactful rural energy solution.
“This off-grid partnership in Mozambique emphasises the bank’s strategy toward impact investment in Africa,” he added.