FMO commits $10m to clean energy platform
Dutch development finance institution FMO has provided $10 million to Nithio’s investment vehicle, FAIR.
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Dutch development finance institution FMO has provided $10 million to climate fintech platform Nithio’s investment vehicle, FAIR: the Facility for Adaptation, Inclusion, and Resilience. FAIR provides financing to companies offering clean energy solutions to households and small enterprises in Africa.
FMO’s investment will enable Nithio to scale its financing to distributors of solar home systems and solar productive use appliances, such as lighting, communication, irrigation, and cooling systems for households and businesses.
FMO is investing in FAIR via the Access to Energy Fund (AEF), which FMO manages on behalf of the Dutch government's Ministry of Foreign Affairs, to support private sector projects aimed at providing access to renewable energy in emerging markets and developing countries.
Dorien Lobeek, portfolio manager of AEF said, “By investing in the smaller, locally owned borrowers, Nithio contributes to renewable energy access for households, which is right in the centre of the AEF mandate. Also, the loans will be in local currency, which is highly additional.”
FAIR is a blended finance, open-ended vehicle. FMO joins other impact-driven investors, including the US International Development Finance Corporation, EDFI-ElectriFI, FSD Africa Investments, Shell Foundation, IFU, and the Schmidt Family Foundation. FMO’s investment can be drawn by FAIR either in USD or in synthetic local currency (Kenyan Shilling or Nigerian Naira) to limit exchange rate risk.
“We are proud to partner with FMO and look forward to together making a positive impact on households and SMEs across Africa,” said Kate Steel, co-founder and CEO at Nithio. “FMO's investment in FAIR will scale energy solutions that improve livelihoods and quality of life while also reducing carbon emissions.”
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