FMO backs Burkina Faso solar project
Solar farm aims to provide cheaper, cleaner power in one of West Africa’s least electrified nations.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
FMO, the Dutch development finance institution, has approved an €11.2 million loan to Dédougou Solaire, a special purpose vehicle in Burkina Faso. The financing, from FMO’s Building Prospects Fund, is expected to mobilise an additional €6 million in concessional funding from the African Development Bank’s Sustainable Energy Fund for Africa.
Dédougou Solaire is owned by MIHIA Holding (70%) and Syscom Network (30%). MIHIA Holding, established in 2021 as an investment platform, is a joint venture between Qair International and STOA, holding 51% and 49% respectively.
The €17.2 million in combined debt will support the €20.7 million development, construction and operation of an 18MWp solar farm in Souri, near Dédougou. The project is expected to provide cleaner, cheaper electricity to a country with one of the lowest electrification rates in West Africa, replacing costlier thermal generation and imports.
Want to know who is raising, investing, and exiting in Africa? Get Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe now