The Africa Enterprise Challenge Fund (AECF), in partnership with the UK government, launched the Household Solar Round 2 Competition. With a funding envelope of $20 million, the project aims to accelerate access to domestic solar systems by rural households in Ethiopia, Somalia, Ghana, Nigeria and Senegal.
"The increase in electricity demand and the high cost of energy production, and the low coverage of rural areas are a constant that is being repeated across the continent. Even if the situation persists, initiatives promote the deployment of private solar installations by the private sector, which is an affordable and economical solution for the electrification of rural communities, "said Christian Rogg, Director of the Department of International Development (DFID) for Ethiopia. DFID is an executive department of the UK government in charge of international development assistance.
In this second phase, the competition will provide selected companies with financing consisting of a mix of zero interest loans and grants, as well as technical assistance. In its first phase, the project allocated $7 million in funding to 10 companies operating in four countries.