All On, USADF create N900m funding for Nigerian offgrid projects
by ISAAC ANYAOGU
December 7, 2017 | 7:56 am| | | Start Conversation
The U.S. African Development Foundation (USADF) and All On have announced the creation of a N915 million ($3m) partnership with the goal of expanding access to energy for underserved and unserved markets in Nigeria.
The USADF is an independent U.S. Government agency established by Congress to support and invest in African owned and led enterprises which improve lives and livelihoods in poor and vulnerable communities in Africa. All On is an impact investing company established to stimulate the development of collaborative partnerships for innovative solutions that facilitate increased access to affordable, reliable and sustainable energy sources in Nigeria
Over the next 3 years, both parties will jointly provide funding for up to 30 Nigerian small and medium enterprises that improve energy access through off-grid energy solutions spanning solar, wind, hydro, biomass and gas technologies. USADF will provide grant funding to the selected companies while All On will provide an equal amount of impact capital in the form of convertible loans and/or equity.
“We are proud to partner with All On to find sustainable solutions to the significant energy gap in Nigeria,” says C.D. Glin, USADF President and CEO. “It is through such collaborative partnerships that we can transform local energy access, identify unexplored opportunities, and bring affordable energy sources to those who need it most.”
According to Wiebe Boer, All On CEO, “This partnership with USADF to provide blended capital for Nigerian owned off grid energy companies is an innovative approach towards investing in Nigerian solutions to the country’s energy gap. We look forward to working with USADF to invest and support the growth of Nigeria’s future off grid energy sector leaders.”
Since 2013, USADF off-grid energy investments have already turned on the lights for over 120,000 people in hard-to-reach areas. USADF has invested over $7.5 million in 75 energy entrepreneurs in nine countries to bring affordable and renewable energy to rural communities across Africa. USADF is a key partner in Power Africa, a U.S. Government-led initiative aimed at doubling the number of people in Sub-Saharan Africa who have access to electricity.
“Public-private partnerships are the cornerstone of the Power Africa model, and we are pleased to support USADF and All On to foster the growth of energy enterprises to bring reliable electricity to more Nigerians,” says Andrew M. Herscowitz, Power
“This partnership demonstrates that ‘bankable’ projects do not just exist at the multi-million dollar level. Nigeria’s off-grid energy sector is full of potential to serve a vast untapped market and this partnership will combine USADF’s grant dollars with private sector funding to produce even greater impact.”
All On is an impact investing company that works with partners to increase access to commercial energy products and services for under-served and unserved markets in Nigeria, with the Niger Delta as the priority region of focus. It seeks both financial returns and social impact to provide or improve access-to-energy for millions of households and SMEs. The company recently announced their first set of debt and equity investments.
Power Africa is a U.S. Government-led partnership coordinated by the U.S. Agency for International Development (USAID). Launched in 2013, Power Africa’s goals are to increase electricity access in sub-Saharan Africa by adding more than 30,000 megawatts of electricity generation capacity and 60 million new home and business connections.
Power Africa works with African governments and private sector partners to remove barriers that impede energy development in sub-Saharan Africa and to unlock the substantial natural gas, wind, solar, hydropower, biomass, and geothermal resources on the continent. To date, Power Africa has leveraged over $50 billion in commitments from the public and private sectors, including more than $40 billion in commitments from the private sector.
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