EAAIF invests EUR 28 million in 52 MW solar plant in northern Côte d’Ivoire to increase energy access to underserved businesses and communities
- Landmark transaction that will encourage further private sector investment in Côte
d’Ivoire’s renewable energy sector - The first solar IPP to announce financing in Côte d’Ivoire and a first by an Ivorian company
- EAAIF’s investment will support energy access in underserved areas of the country
Abidjan, 23 December 2024: The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private
Infrastructure Development Group (PIDG) company, managed by Ninety One, today announced a
EUR 28 million investment in a 52 MW solar photovoltaic (PV) plant in northern Côte d’Ivoire.
The commitment will provide a critical source of power for underserved businesses and
communities around the city of Ferkessédougou which sits at a major crossroad with direct routes
to border crossings into Mali and Burkina Faso. Access to electricity in Côte d’Ivoire varies
significantly between urban and rural areas. In 2022, 70.4% of the population had access to
electricity with the rural, northern regions, facing the largest gap in access.
The West African Development Bank (BOAD) which acted as the mandated lead arranger, also
invested EUR 24 million equivalent in local currency in the project which will be developed by PFO
Energies, a wholly owned subsidiary of PFO Africa – one of the largest construction companies in
Côte d’Ivoire. PFO Energies will also construct an 8km 90kv transmission line to connect the
project to the national grid.
The project is one of the several concessions recently awarded under the government’s solar PV
independent power producer (IPP) framework. These concessions collectively account for 600MW
and a significant portion has been awarded to local Ivoirian companies. The transaction represents
a significant milestone as the first solar IPP to announce financing and the first by a domestic
company. The investment will support the development of Côte d’Ivoire’s private sector, providing a
roadmap for local companies to partner with international financiers to plug energy access gaps.
EAAIF’s investment underlines the Fund’s commitment to driving universal energy access in Côte
d’Ivoire, following a USD 30 million commitment to support a USD 96 million bond – the region’s
first ever social asset-backed security. Proceeds from the issuance were used to support the
government-led Electricity for All (PEPT) programme, to finance the connection of almost 400,000
additional low-income households to the national grid.
This transaction supports PIDG’s mandate to drive the development of renewable energy
infrastructure, supporting clean energy access and the transition to low-carbon societies.
Côte d’Ivoire relies heavily on gas for around 70% of its power generation, with the plan to increase the
share of renewables to 42% by 2030. The project is expected to result in the displacement of
41,000 tCO2e annually.
Thanzi Ramukosi, Investment Specialist, Ninety One, the fund manager of EAAIF, said: “Our
investment reinforces our ambition to provide energy access for underserved communities and
businesses in Côte d’Ivoire by supporting the government’s strategy to welcome participation from
the private sector. This landmark transaction will serve as a catalyst for further private investment
in renewable energy IPPs, positioning EAAIF as a key driver of change for the country’s solar
sector.”
Jacky Juan-Treich, PFO Energies’s Managing Director, said: “The Ferke SOLAR Project represents
a major step for the development of renewable energies in Ivory Coast through its SPV. This 52
MWp solar power plant project developed by PFO ENERGIES reinforces the PFO Africa group’s
commitment to bring sustainable and accessible energy solutions not only for the country but also
for the Sub-Saharan region. Thus, we provide a concrete response to the energy needs of
underserved regions, while supporting the energy transition and national climate ambitions. This
project illustrates our strong commitment to sustainably transform positively the living conditions
of populations, while demonstrating the capacity of Ivorian companies to attract major
international investors”.
Jean-Jacques Ngono, representing Finergreen Africa, said: “This project represents a major
milestone for PFO Énergies in Côte d’Ivoire as being the first solar independent power producer
(IPP) to secure financing in the country. With a capacity of 52 MW, it will help address the growing
energy demand of the country while improving the renewable energy part in the energy mix.
Finergreen Africa, acting as the exclusive financial advisor, played a pivotal role in structuring and
executing this landmark transaction. Leveraging its expertise in renewable energy financing in
Africa, Finergreen ensured the smooth progression of the process, taking into account all the
specificities of the country and project. We express our deep gratitude to the lenders, BOAD and
EAAIF, for their invaluable support and flexibility in making this transformative initiative possible.”