The European Union Commission has also committed €40 million to the AfDB’s financing. Additionally, AFDB will be supported by the Global Environment Facility (GEF), All On, Calvert Impact Capital, Shell Foundation, the United States Agency for International Development (USAID), and the United Kingdom’s Department for International Development (DFID).
According to a study released by research network Afrobarometer,in most of the african countries, only 2 in 5 people have access to a reliable supply of energy throughout the day, The world bank also reports that due to poor energy infrastructure,25 nations in sub-Saharan Africa arefacing an energy crisis. To resolve the poor power situation of Africa, a loan of $500 million from the African Development Bank (AfDB) has been sanctioned to support Africa’s electrification through renewable energy. Under the scheme called the Energy Inclusion Facility (EIF), the loan will be distributed among the major project promoters and off-grid suppliers across the continent. According to a statement from AFDB,out of the total sanction,$100 million will be allocated for off-grid providers. to expand their services,. Priority will be given to rural areas whichare often not connected to the national electricity grid. The remaining loan of $400 million, will support major projects. benefiting independent power producers (IPPs), with projects of less than 25 MW, and who require an investment of around $30 million.
