DBSA provides funds to Mozambican supplier of solar home systems

MOZAMBIQUE – 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, 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.

Ignite Power announced the signing of the Implementation Agreement to provide electricity to 1.8 Mozambicans in rural areas, 1.2 of whom are children, by 2021.

The project was signed with the Ministry of Mineral Resources and Energy, that has been working vigorously to supply the country’s entire population with a steady supply of electricity by 2030 as part of the National Electrification Strategy.

Currently, only 26.2% of Mozambique’s population has access to the national electricity grid. Ignite Mozambique project will supply off-grid access to 6.2% of the population, providing them with first-time access to life-changing devices.

The company provides its users with unique solar panels that supply 24 hours of power. A pay-as-you-go payment model was devised and fitted for the specific market, allowing users to pay a very low monthly fee (US$6 per month) until they end up owning the system.

The new partnership will not only be providing millions with electricity but will also be creating 3800 new jobs in the local economy.

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