USADF to fund $3m access to energy in Nigeria
The U.S. African Development Foundation (USADF) and All On, have announced the creation of a $3million partnership with the goal of expanding access to energy for underserved and un-served markets in Nigeria.
A statement from USADF, said over the next three years, both parties will jointly provide funding for up to 30 Nigerian small and medium enterprises (SMES) that improve energy access through off-grid energy solutions spanning solar, wind, hydro, biomass, and gas technologies.
USADF is expected to 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.
USADF President and Chief Executive Officer, C.D. Glin, said: “We are proud to partner with All On to find sustainable solutions to the significant energy gap in Nigeria. 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.”
All On Chief Executive Officer, Wiebe Boer, explained that the partnership with USADF will provide blended capital for Nigerian owned off-grid energy companies, an innovative approach towards investing in Nigerian solutions for its 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 had invested over $7.5million 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.
Power Africa Coordinator, Andrew M. Herscowitz, said noted that 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.
“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.
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