The US government’s International Development Finance Corporation (DFC) recently agreed to cover half of potential losses on USD 20 million being raised by Trine AB, a Sweden-based solar investment platform, to support industrial solar ventures as well as mini-grids in Latin America and the Caribbean. This funding is sufficient to supply renewable energy to approximately 600,000 people, “offsetting close to 200,000 tons of carbon dioxide emissions.”
Trine is an online investment platform that allows companies and individuals to invest in loans that fund solar businesses in developing countries. As of March 2021, Trine has invested approximately EUR 46.2 million (USD 54.2 million) in solar businesses in Guatemala; India; Myanmar; Pakistan; and the following African countries: Ghana, Kenya, Malawi, Nigeria, Rwanda, Senegal, Sierra Leone, Tanzania, Togo, Uganda and Zambia.
DFC was launched in 2020 to “help businesses expand into emerging markets, foster growth and improve lives in the developing world while reinforcing US foreign policy and national security interests.” The organization has an investment cap of USD 60 billion to deploy in forms such as equity placements, insurance, technical assistance and research. DFC focuses its efforts on low-income and lower-middle-income countries in areas such as “energy, healthcare, critical infrastructure and technology.” Upon its founding, DFC took over the work of the Overseas Private Investment Corporation (OPIC) as well as the Development Credit Authority of the US Agency for International Development.
By Harriet Ritchie, Research Associate
Sources and Additional Resources
US International Development Finance Corporation press release
https://www.dfc.gov/media/press-releases/dfc-guaranty-catalyzes-20-million-support-grid-renewable-power
US International Development Finance Corporation homepage
https://www.dfc.gov/
Trine AB homepage
https://trine.com/
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