Nigeria, has been chosen as one of African nations to benefit from the $4.5 million renewable energy financing programmes by the FSD Africa Investments (FSDAi), the investment arm of FSD Africa.
The FADAi, is investing $4.5 million in Nithio FI, a renewable energy financing intermediary focused on the Pay as You Go (PAYG) off-grid solar sector.
The intermediary provides renewable energy solutions for households and small businesses in Nigeria, Kenya and Uganda.
Over the next five years, Nithio FI aims to provide financing to more than 224,000 energy access products across the continent, including solar home systems (SHS) and productive use appliances.
Despite the increasing interest in Africa’s off-grid solar offerings, GOGLA’s statistics reveal that investment in the sector has stalled over the last five years.
In addition millions of people across the continent are still expected to be without electricity in 2030 unless there is significant progress in scaling up financing access.
Through the FSDAi’s investment, Nithio FI’s innovative approach will unlock capital for renewable off-grid energy in Africa, supporting access to energy for households, smallholder farmers, and micro-entrepreneurs that would otherwise struggle to meet the costs.
This increased access to clean energy will enhance approaches to countering climate change and promote sustainable development.