The Development Bank of Southern Africa (“DBSA”) announced today at the Global Off-Grid Solar Forum & Expo 2020, that it has committed project funding to Ignite Moçambique.
Ignite Moçambique is a local Mozambique company that was established with the purpose of deploying solar home systems (“SHS”) in rural Mozambique. DBSA will also be the lead arranger for the debt funding for the Project, targeted to connect 1.8 million people to clean, sustainable power.
According to World Bank data, over 70% of the country’s population is living without electricity in their homes, a challenge that is hindering economic prosperity, proper education, and leads to massive health and fire hazards. Ignite Moçambique’s aim is to facilitate the implementation of sustainable development activities in support of rural economic development and poverty alleviation in the country. By utilizing the most accessible resource - sunlight, the company is providing customers with clean, sustainable and safe power for the first time.
Ignite Moçambique is a partnership between Ignite Power and Source Capital. Ignite Moçambique has leveraged Ignite Power’s past experiences across Africa to support the Government of Mozambique’s - Energy For All Program, aiming to deploy 300,000 SHS as part of an Implementation Agreement in collaboration with the Ministry of Energy - Ministério dos Recursos Minerais e Energia (“MIREME”) and Fundo de Energia and Ministry of Finance (“FUNAE”). In addition to providing millions of people with household electricity, the current project is also expected to create thousands of jobs in the rural communities.
Mohale Rakgate, DBSA’s Group Executive for the Project Preparation Division, commented:
“The investment consists of a structured project preparation facility that will allow Ignite Moçambique to grow its portfolio in order to demonstrate the requisite track record to become commercially bankable. Together we aim to connect 300,000 households in off-grid areas in Mozambique. This facility will anchor DBSA as a long-term partner to support this Project through their development efforts in scaling up this highly impactful rural energy solution. This off-grid partnership in Mozambique emphasizes the bank’s strategy toward impact investment in Africa”.
Yariv Cohen, Ignite Power’s CEO, stated:
“We are thrilled to have DBSA join us in supporting the Mozambique Government connect 1.8 million people to clean power. Our focus at Ignite Moçambique is to create development impact at scale, through providing the most affordable energy in Mozambique, like we are doing in other African markets. With the support from the DBSA, we are now one step closer to reaching our targets”.
Note to Editors:
About the Development Bank of Southern Africa (DBSA)
The DBSA is a South African state-owned enterprise and a leading development finance institution working across the African continent. Established in 1983, its primary purpose is to promote economic and social development as well as regional integration through infrastructure investment and development.
About Ignite Power
Being the leading, fastest-growing pan-African developer and financier of solar projects, Ignite Power is striving to connect hundreds of millions of people in Africa to power. In order to provide the indigent rural customers with a sustainable solution, the company provides the most affordable price plans in Africa and is constantly working to lower prices even further. With our presence in over 10,000 villages, across 6 countries, Ignite Power is leading the way to a more sustainable, enlightened and inclusive future. Visit – www.ignite.solar
About Source Capital
Source Capital is an independent private equity boutique founded in 2015, sourcing investable assets in Real Estate, Energy and general Private Equity across Portuguese-speaking Africa, primarily in Mozambique and Angola. Energy is a strategic sector where Source Capital is active of both on-grid and off-grid projects. Visit www.source.capital
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