The Board of Directors of the ADF has given the green light, for financial support of €3.73m to Togo to help develop electric mini-grids in 317 localities.

The project would enable the Togolese government to create up mini-grid project firms upstream where the State will be able to contribute, in conjunction with the private sector, an equity commitment in order to get ready to develop green mini-grid projects.

Additionally, it entails offering technical support to increase the electric mini-grids project execution agency’s capacity.

The funding includes a loan of 2.73 million euros from the African Development Fund, a loan window for preferential rates from the African Development Bank Group, and a US$1 million grant from the Sustainable Energy Fund for Africa.

It is intended to support the project’s preparatory phase for the rural electrification of 317 localities by solar mini-grids in Togo (SEFA).

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Remarks on the electric mini-grids project in Togo

DG of the Togolese rural electrification and renewable energies, Nassoma, said, “We share a big goal to electrify 317 communities. With this new project and funding from the African Development Bank. Furthermore, the Bank’s assistance will aid in igniting private sector investment. To provide energy in the target areas served by Togo’s five regions.”

The Director of the ADB Group’s Renewable Energy and Energy Efficiency Department, Dr. Daniel Schroth, said,” The Bank wishes to assist the nation in reaching its goal of providing everyone in the nation with access to power by 2030 through this project.

The electric mini-grids will spur economic growth and lessen its adverse effects on the environment. By encouraging investments in the private sector to provide underserved rural populations in Togo with access to clean energy.”

This project phase prepares the way for the effective execution of the downstream investment phase. During which the projects will be funded with concessional resources by the ADB. The Sustainable Energy Fund for Africa, and other donors will also contribute to the funding. As a result, they would encourage private sector involvement which is expected to contribute up to 30% of the investment project for Togo’s green mini-grids.

Country Manager of the ADB in Togo, Wilfrid Abiola conclude, “The initiative will benefit the most disadvantaged communities in Togo. By increasing private sector finance and enhancing electrification and climate resilience.”

The ADB, in addition to the electric mini-grids, had 17 active projects in Togo as of November 30, 2022. Totalling €298.36m in finance.