Dutch bank FMO pushes energy sector in sub-Saharan Africa with $120 million
18 December 2019
Source: Ecofin Agency
FMO, the Dutch development finance institution, has launched in collaboration with the British Shell Foundation, the Energy Entrepreneurs Growth Fund (EEGF) dedicated to sub-Saharan African companies operating in the energy sector. The fund, which plans to raise $120 million, made its first closing with $45 million.
The 12-year program will provide financing and technical assistance to more than 25 companies in the region. Citing OECD research, the FMO says sub-Saharan Africa has the lowest energy access rate in the world with 600 million people without electricity and more than 125 million households without access to modern energy services.
“Supporting renewable energy programs is key to FMO’s strategy, as lack of access to energy is one of the biggest barriers to development. We are excited to announce the EEGF partnership to help boost and scale innovative companies providing off-grid solar power in Africa,” commented Frederik van Pallandt, Director of Energy at the FMO.