Stichting Clean Energy and Energy Inclusion for Africa (CEI Africa) signed a results-based financing (RBF) grant for a total of up to $1,953,000 to green mini-grid (GMG) developer Africa GreenTec for the densification of 18 mini grids and the construction of 7 mini grids in rural Mali.
Africa GreenTec was awarded the RBF grant to support the connection of 38 rural Malian communities to mini grids, resulting in approximately 38,000 individuals gaining access to productive and renewable electricity. The company’s Malian subsidiary, AGT Électrification Rurale SARL, Bamako, will independently manage the investment.
Africa GreenTec Asset GmbH was founded in 2016 to support equitable development in Sub-Saharan Africa through sustainable energy solutions. The company’s Malian subsidiary, AGT Électrification Rurale SARL, Bamako, was founded in 2017. To date, the Malian subsidiary produces, distributes and sells renewable energy in 20 communities not connected to the central Malian power grid. In total, nearly 4,500 connected households currently receive electricity. Villagers and small businesses have already noticed the positive effects, including reduced migration to other regions of Mali and abroad.
Primarily located in Mali’s Kayes and Sikasso regions, the 38 newly electrified communities largely rely on farming and livestock rearing, with some engaging in traditional gold mining. Future programs include supporting income-generating activities with a focus on micro-businesses and women’s empowerment programs, including shea butter production.
CEI Africa has allocated €21M to support project developers to finance GMGs through RBF, including the provision of technical assistance. Africa GreenTec’s project further supports CEI Africa’s goal of improving energy access for households in Mali, a country where more than 53.4 percent of the population still lacks energy access.
“Our collaboration with CEI Africa will enable AGT ER to further expand in the country and reinforce existing sites over the next two years by providing electricity to more than 8,500 households, with more than 85,000 direct beneficiaries,” said Alou KEITA, AGT ER General Manager. “This means a significant increase in AGT ER’s impact in the field of rural electrification in Mali.”
“CEI Africa is pleased to support the provision of electricity access to underserved rural Malians,” said CEI Africa Board member Claudia Vroom. “GreenTec’s off-grid solutions will create economic opportunities and improve access to social services in remote areas.”
The RBF grant award is pursuant to fulfillment of certain conditions precedent agreed to between CEI Africa, and Africa GreenTec, which includes, among others, the execution of a Grant Agreement. The RBF grant funding will be disbursed upon completion of new electricity connections.