Togo: the African Development Fund is making nearly €4 million available to lay the foundations of mini-electricity networks in 317 locations in the country | African Development Bank

On December 15, 2022, the Board of Directors of the African Development Fund gave the green light in Abidjan for financial support of €3.73 million to Togo to help the country develop mini-grids in 317 cities.

The funding is intended for the preparatory phase of the project to electrify rural areas of 317 sites through solar mini-grids in Togo and consists of a EUR 2.73 million loan from the African Development Fund, the loan window for preferential rates from the African Development Fund Bank Group and a $1 million grant from the Sustainable Energy Fund for Africa (SEFA).

The project will enable the Togolese government to prepare for the development of green mini-grid projects by establishing upstream mini-grid project companies in which the state can make its own contribution in parallel with the private sector. It also includes providing technical assistance to build the capacity of the project implementing agency.

” With this new project and funding from the African Development Bank, we share a strong ambition, namely to electrify 317 rural areas. The bank’s support will help catalyze private sector financing to make electricity available in the target areas served in Togo’s five regions,” said Robil Nassoma, Director General of the Togolese Energy Agency for Electrification of the countryside and renewable energy.

The director of the African Development Bank Group’s renewable energy and energy efficiency division, Dr Daniel Schroth, said: “With this project, the bank aims to support the country’s goal of achieving universal access to electricity by 2030. This project will increase economic growth and reduce negative impact on the environment, by increasing renewable energy in Togo by catalyzing private sector investment in access to clean and sustainable energy for disadvantaged rural population in Togo”.

This phase of the project paves the way for successful implementation of the downstream investment phase, in which the African Development Bank, the Sustainable Energy Fund for Africa and other donors will finance the projects with concessional funds. In this way they stimulate the participation of the private sector, which should contribute up to 30% of the investment project in Togo’s green mini-grids.

“By boosting private sector financing and improving both electrification and climate resilience, the project will have a positive impact on the most vulnerable groups in rural areas in Togo. », concludes Wilfrid Abiola, country manager of the African Development Bank in Togo.

As of November 30, 2022, the African Development Bank’s active portfolio in Togo comprised 17 operations with total funding of €298.36 million.