WeLight, which operates in Madagascar and Mali, recently raised EUR 19 million (USD 20 million) from the Electrification Financing Initiative (ElectriFI) of Belgium-based European Development Finance Institutions (EDFI), the EU’s European Investment Bank (EIB) and three funds managed by Netherlands-based Triodos Investment Management to build solar mini-grids in Madagascar. These commitments complete the fundraising phase of a EUR 28 million (USD 30 million) project to build off-grid solar installations, including energy storage systems, distribution lines and meters, that are slated to serve approximately 250,000 people by electrifying 45,000 homes and businesses in 120 villages. WeLight sourced the prior funding for the project as loans from its equity investors AXIAN Group, a Madagascar-based conglomerate; Sagemcom, a French industrial firm; and the Norwegian government’s Norfund.
Ambassador Isabelle Delattre Burger, who represents the EU in Madagascar, said, “This project is a great example of the positive impact of Team Europe [the EU together with its member states] to improve daily life for people in Madagascar. Access to affordable and clean energy for all is an important [UN] Sustainable Development Goal and contributes to the green and just transition supported by the EU’s Global Gateway strategy.”
Established in 2018, WeLight provides clean energy to rural areas of Madagascar and Mali. As of 2022, it was delivering electricity to 9,000 homes through 40 mini-grids.
EDFI ElectriFI is an EU-funded vehicle that finances startups that build renewable energy infrastructure in emerging markets. It is managed by EDFI, which was founded by 15 European development finance institutions.
Established in 1958, EIB provides technical assistance, loans and financial guarantees in sectors such as small and medium-sized enterprise and climate mitigation and adaptation. The institution issued EUR 95 billion (USD 102 billion) in financing during 2021.
Triodos Investment Management, founded in 1990, is a subsidiary of the Netherlands-based Triodos Bank, which seeks to help individuals and businesses use their money to promote “positive social, environmental and cultural change.” As of 2021, Triodos Bank has EUR 24 billion (USD 25 billion) in assets under management and serves approximately 747,000 customers in Europe. Triodos Investment Management reports total assets of EUR 5.7 billion (USD 6.0 billion) as of 2023.
By Ben Barba, Research Associate
Sources and Additional Resources
WeLight homepage
https://www.welight-africa.com
EDFI ElectriFI webpage
https://www.edfi.eu/facility/electrifi/
EIB webpage
https://www.eib.org/
Triodos Investment Management homepage
https://www.triodos-im.com/
Previous MicroCapital story on EDFI
https://www.microcapital.org/microcapital-brief-edfi-to-harmonize-measurement-of-development-finance-institutions-impact-toward-un-sustainable-development-goals/
Previous MicroCapital story on EIB
https://www.microcapital.org/microcapital-brief-eib-lends-credo-bank-10m-for-msmes-in-georgia/
Previous MicroCapital story on Triodos Investment Management
https://www.microcapital.org/microcapital-brief-retail-capital-borrowing-10m-from-triodos-investment-management-for-advances-to-smes-in-south-africa/
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