In Zambia, the Trade and Development Bank for Eastern and Southern Africa (TDB) has granted a $2 million loan to MPower Ventures. The fintech company supports local businesses in the distribution of solar home systems in rural areas.
With 89% of Zambians living in rural areas still without access to electricity, according to Power Africa, the Trade and Development Bank of Eastern and Southern Africa (TDB), like other development banks active in sub-Saharan Africa, is betting on decentralised solar systems. The Mauritius-based bank has just granted a $2 million loan through its Trade and Development Fund (TDF) to MPower Ventures, a company based in Zurich, Switzerland.
In rural areas of Zambia, the company headed by Manuel Seiffe is supporting the supply of solar home systems and other equipment for productive use of solar energy, including freezers, sewing machines and water pumps. These products are intended for households, as well as farmers in peri-urban and rural areas, and small and medium-sized enterprises (SMEs).
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According to TDB, the funding provided under its TDF facility will expand the range of ready-to-use solar home products in Zambia. More importantly, the funding supports the expansion of MPower’s strategy based on “energy hubs” that it installs in rural areas. These platforms enable communities to access electricity for domestic and public purposes, such as lighting health centres, by extending the power supply from the centres to the nearest health facilities.
At least 50 energy centres are expected to be built thanks to the TDB loan, repayable over 3 years. This infrastructure will create 30 direct jobs and up to 500 indirectly. These investments fit in well with the priorities of the “Rural Electrification Master Plan for Zambia”, which aims to achieve a rural electrification rate of 51% by 2030. The government is implementing a strategy to encourage private sector investment to provide additional energy solutions, such as solar energy, to bridge the energy gap,” explains Oliver Saasa, Chairman and Non-Executive Director of the TDF Board of Directors.
Jean Marie Takouleu
