The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, and the International Solar Alliance (ISA) have launched the MIGA-ISA Solar Facility, a trust fund aimed at accelerating solar energy projects in developing regions, with an initial focus on Sub-Saharan Africa. Initiated with support from the Indian government, this facility combines ISA’s technical know-how with MIGA’s financial mobilization capabilities.
The fund seeks to enhance the bankability of solar projects by offering concessional financing options, such as first-loss instruments and reinsurance, to reduce the cost of MIGA guarantees. While starting in Africa, the initiative is set to expand globally, contributing to the target of creating 300 million new electricity connections in Africa by 2030.
Managed by MIGA, the facility will help attract private investment by providing affordable risk mitigation. ISA has contributed $2 million in seed funding, with plans to raise a total of $10 million. The first project, already underway in the Democratic Republic of Congo, is expected to reduce operational costs and lower consumer tariffs.
Hiroshi Matano, MIGA’s Executive Vice President, expressed pride in the facility's role in advancing clean energy access in Africa. ISA Director General Ajay Mathur highlighted the partnership’s potential to bring solar power to millions of off-grid Africans.
This initiative forms part of a broader effort, supported by the World Bank and the African Development Bank, to connect 300 million people in Africa to electricity by 2030.
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