GHANA/KENYA: EDFI Lends USD3 Million to Redavia to Solarize Businesses
Posted on : Friday, 20th May 2022
The Electrification Finance Initiative (EDFI ElectriFI) is signing a new US$ 3.1 million loan for Redavia. The German company will use the loan to provide solar power to businesses and industries in 2 African countries.
The partnership between the Electrification Finance Initiative (EDFI ElectriFI) and Redavia is growing stronger. The European Union (EU)-funded facility is providing a new loan to the German company, which offers solar power plant leasing to commercial and industrial (C&I) customers. Redavia will use the US$ 3.1 million loan to finance its expansion in Kenya and Ghana, where it has had a strong presence for several years.
This financing “supports Redavia’s unique approach to the market with standardized solar farms and well-defined customer segments, enabling rapid growth in a market where competition has intensified in recent years,” said Quentin Antoine, Senior Investment Manager at EDFI Management Company, the manager of EDFI ElectriFI.
Expansion in 2 Countries
In recent years, Redavia has strengthened its operations in sub-Saharan Africa, mainly in Ghana and Kenya, where it has local subsidiaries. The company led by Erwin Spolders has been able to count on the support of several financial partners, including the Swiss impact investor AlphaMundi, the Energy and Environment Partnership Trust Fund (EEP Africa) or the Nordic Development Fund (NDF).
In year 2018, the Munich, Germany-based company secured an initial US$2 million loan from EDFI ElectriFI for its expansion in Africa. This funding “has enabled Redavia to make great strides towards its goal of operating 100 MWp of solar panels in small and medium-sized enterprises (SMEs) in industrializing African economies to create local wealth and jobs in a sustainable way,” says Erwin Spolders.
Currently, the solar photovoltaic provider has an installed solar capacity of 7.4 MWp that benefits nearly 29,000 people. According to EDFI ElectriFI, for the period 2018-2022, in Ghana alone, Redavia has commissioned 3.4 MWp of solar capacity serving 41 C&I customers for an annual production of 3,176 MWh per year, helping to avoid the equivalent of 4,129 tons of CO2 per year.
