23 January 2024: Stichting Clean Energy and Energy Inclusion for Africa (CEI Africa) signed a results-based financing (RBF) grant for a total of up to USD 1,953,000 to green mini-grid (GMG) developer Africa GreenTec for the densification of 18 mini grids and the construction of 7 mini grids in rural Mali.
Africa GreenTec was awarded the RBF grant to support the connection of 38 rural Malian communities to mini grids, resulting in approximately 38,000 individuals gaining access to productive and renewable electricity. The company’s Malian subsidiary, AGT Électrification Rurale SARL, Bamako, will independently manage the investment.
Africa GreenTec Asset GmbH was founded in 2016 to support equitable development in Sub-Saharan Africa through sustainable energy solutions. The company’s Malian subsidiary, AGT Électrification Rurale SARL, Bamako, was founded in 2017. To date, the Malian subsidiary produces, distributes and sells renewable energy in 20 communities not connected to the central Malian power grid. In total, nearly 4,500 connected households currently receive electricity. Villagers and small businesses have already noticed the positive effects, including reduced migration to other regions of Mali and abroad.
Primarily located in Mali’s Kayes and Sikasso regions, the 38 newly electrified communities largely rely on farming and livestock rearing, with some engaging in traditional gold mining. Future programs include supporting income-generating activities with a focus on micro-businesses and women’s empowerment programs, including shea butter production.
CEI Africa has allocated EUR 21M to support project developers to finance GMGs through RBF, including the provision of technical assistance. Africa GreenTec’s project further supports CEI Africa’s goal of improving energy access for households in Mali, a country where more than 53.4 percent of the population still lacks energy access.
“Our collaboration with CEI Africa will enable AGT ER to further expand in the country and reinforce existing sites over the next two years by providing electricity to more than 8,500 households, with more than 85,000 direct beneficiaries,” said Alou KEITA, AGT ER General Manager. “This means significant increase in AGT ER’s impact in the field of rural electrification in Mali.”
“CEI Africa is pleased to support the provision of electricity access to underserved rural Malians,” said CEI Africa Board member Claudia Vroom. “GreenTec’s off-grid solutions will create economic opportunities and improve access to social services in remote areas.”
The RBF grant award is pursuant to fulfillment of certain conditions precedent agreed to between CEI Africa, and Africa GreenTec, which includes, among others, the execution of a Grant Agreement. The RBF grant funding will be disbursed upon completion of new electricity connections.
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About AGT-ER: Inaugurated in 2017 as a subsidiary of Africa GreenTec Asset GmbH, Africa GreenTec Électrification Rurale (AGT-ER) SARL stands as a trailblazer in reshaping Mali’s renewable energy landscape. With a workforce of 80 dedicated individuals, AGT-ER is committed to providing sustainable and affordable electricity solutions to long-overlooked communities, with a primary focus on rural areas. Utilizing solar energy as a driving force, AGT-ER has successfully implemented mini grids in 24 villages, directly impacting 4,500 households and reaching an impressive 45,000 individuals. This remarkable outreach underscores the company’s dedication to bringing reliable electricity to areas that have historically lacked access. AGT-ER’s approach goes beyond mere electrification; it’s a catalyst for economic development and an enhancer of living standards. The company’s clean energy technologies not only minimize its carbon footprint but also contribute to environmental sustainability, aligning with its core values.
With each expansion, AGT-ER exemplifies a commitment to innovation, environmental responsibility, and a vision for an energy-empowered future. As the company continues to grow, its role in revolutionizing the energy landscape across the African continent becomes increasingly impactful, bringing light and progress to those who need it most.
About CEI Africa: CEI Africa was established by the German development finance institution KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) in 2021 to improve access to energy for rural and peri-urban households and enterprises in sub-Saharan Africa. CEI Africa is managed by Triple Jump B.V., Persistent, and GreenMax Capital Group. It is a one-stop shop for mini-grid developers and other off-grid energy companies, offering a variety of financing instruments. The implementation of the Foundation’s Crowdlending window, which provides debt and investment products in collaboration with European Crowdlenders, is led by Persistent. CEI Africa has allocated EUR 28M to support off-grid energy companies and mini-grid project developers through co-financing with Crowdlenders, including the provision of Technical Assistance. GreenMax manages the Results-based and impact-based financing window, offering results-based financing grants and forgivable loans. For more information, visit: https://cei-africa.com/.
