The government of Nigeria is set to receive USD 21 million from the United Kingdom and Africa Enterprise Challenge Fund (AECF) to support the deployment of solar generated electricity small businesses in the country.
The funds will provide a mix of interest-free loans and repayable grants and technical assistance to private sector operators in solar business. It will be deployed through AECF’s Renewable Energy and Adaptation to Climate Technology (REACT) Household Solar Round Two Competition.
The funding window was also part of AECF’s Africa Clean Energy Programme (ACE) which seeks to increase the supply of household solar systems to rural markets at affordable costs, facilitated through innovative financing; operating and distribution models such as the PAYGO and micro-financed solar power interventions.
Solar power operators in Ethiopia, Ghana, Senegal and Somalia are other countries set to benefit from AECF funds. The countries will be allowed to access the funds as long as they meet the requirements spelt out by AECF.
Upto 25 solar-based businesses or operators from these countries will be able to access the fund on a matching grant basis. The REACT programme has so far contributed to the generation of 29.7 MW of clean electricity in countries it has supported.