Sector
Energy
Country
Nigeria
GGC Guarantee
Up to USD 40 million
Transaction total
USD 60 million
Transaction
The Green Guarantee Company (GGC) provided a framework guarantee to the Bank of Africa (BoA) to facilitate BoA’s partnership with ImpactA Global in expanding access to electricity through rural mini-grid development in Nigeria.
The agreement is with multiple Renewable Energy Service Companies (RESCOs) in the Federal Republic of Nigeria to finance the construction of mini-grids as a part of the Distributed Access through Renewable Energy Scale-up (DARES) programme. The USD 750 million programme, funded by the World Bank, aims to scale-up Nigeria's energy access by providing new or improved electricity supplies to more than 17.5 million Nigerians and 200,000 Micro, Small and Medium-sized Enterprises (MSMEs) by 2030.
Impact
The transaction will allow funding of up to 100 mini-grids across 10 states supporting 145,000 new connections to stable, low-cost electricity. The connections will include households, MSMEs, health centres and schools and will support the economic empowerment of rural communities. The first RESCO to receive funding under this framework is Alfuttaim Nigeria Limited to build 10 mini-grids in Kano state.
Additional projected impact includes improved economic outcomes by supporting local developers and gender-based outcomes across energy access, employment and training.
