KEY POINTS
- IFC invests $25 million to support off-grid solar energy in Africa.
- H2R initiative focuses on delivering affordable electricity to remote areas.
- The partnership aims to connect 300 million Africans to electricity by 2030.
The International Finance Corporation (IFC) is investing $25 million to provide clean and affordable energy to some of the hardest-to-reach communities in sub-Saharan Africa. The announcement, made at the COP29 climate conference, highlights a major step toward tackling energy poverty in the region.
The funding will support Acumen’s Hardest-to-Reach (H2R) initiative, which focuses on providing solar power to low-income, off-grid households. This program is the first of its kind to use blended finance to address energy challenges in Africa’s most remote areas.
“This investment shows our commitment to closing the energy gap in sub-Saharan Africa, where millions still lack electricity,” said Makhtar Diop, IFC Managing Director. “By growing off-grid solar markets, we can attract international companies and help local businesses expand sustainably.”
Off-grid solar: A game-changer for Africa
The H2R initiative aims to help off-grid solar companies bring electricity to areas where traditional power grids cannot reach. By offering flexible and impact-driven funding, the program allows these companies to expand their operations.
A recent report by the World Bank and GOGLA, an off-grid solar industry group, highlights the importance of solar solutions. It states that off-grid solar is the fastest and most affordable way to bring electricity to 40% of the people who will still lack power by 2030. Between 2020 and 2022, these solutions provided 55% of new electricity connections in sub-Saharan Africa, where 80% of the world’s unelectrified population lives.
“This program is a real chance to tackle energy poverty,” said Jacqueline Novogratz, CEO of Acumen. “With IFC’s support, we can scale our efforts and bring clean energy to millions of homes, reducing reliance on kerosene and diesel while cutting harmful emissions.”
A brighter future for remote communities
Since its launch, the H2R initiative has already distributed $10 million across six African countries. With the IFC’s $25 million investment, and an additional $20 million from the IDA Private Sector Window Blended Finance Facility, the program will lower costs for borrowers and attract private investors.
The initiative also supports Mission 300, a project by the World Bank and African Development Bank to connect 300 million Africans to electricity by 2030.
By focusing on off-grid solar solutions, programs like H2R are unlocking opportunities for remote communities. They reduce energy costs, improve living standards, and support local economies while promoting environmental sustainability. With this investment, the IFC and Acumen are helping pave the way for a cleaner, brighter future for Africa’s underserved populations.
