THE U.S African Development Foundation (USADF) and All-on have partnered to develop, scale up and promote the use of renewable off-grid energy technologies to reach communities not served by existing power grids in Nigeria.
The All On-USADF collaboration to co-finance innovative Nigerian off-grid energy companies is a three-year partnership to seed up to 30 companies in the country within three years.
Under the partnership, the USADF provides $50000 in seed capital while All-on also provides $50000 in convertible debt to each of the selected energy enterprises in the first year. Another set of companies will also enjoy the same privileges in the second year and later in the third year.
Speaking to journalists in Lagos on Wednesday, the President/CEO, USADF, C.D. Glin, stated that the $50000 is a grant aimed at taking care of the risk associated with new businesses.
“However, to ensure effective management of resources, the beneficiaries will also receive technical assistance fro. USADF and governance support from All-On. We are proud to partner with All-On to foster the growth of local enterprises to bring power and connectivity to underserved Nigerians. This partnership combines grant capital with private sector funding to support the selected Nigerian energy enterprises with means to grow their businesses, increase access to power and change people’s lives.”
On his part, the CEO of Nigeria based All On, an energy impact investment company backed by Shell, Dr Wiebe Boer, said “the biggest challenge hindering Nigeria’s economic and social developments is (lack of) access to energy. These off-grid energy companies are introducing innovations that will improve household livelihoods and local economies by providing affordable power to underserved and unserved communities. We are proud to partner with USADF to provide an innovative blend of financing to these companies to enable them to scale up and meet the increasing demand.”
The managing director/CEO of Rural Electrification Agency (REA), Damilola Ogunbiyi, commended the partners for the innovations they brought to off-grid energy support.
According to her: “This is a remarkable initiative that demonstrates what we already know. That private sector taking a solution-driven role is the only way to provide sustainable power solutions for Nigerians. The federal government through the REA is currently replicating this model of private sector driven power projects through the Nigerian off-grid electrification strategy.”
The beneficiary companies include Havenhill, Prado, Solmenz, A4&T And Darway Coast. Others include Auxano, Eastwind, Alyx, Creeds and iKabin.