The European Investment Bank (EIB) recently partnered with the Eastern and Southern African Trade and Development Bank (TDB) to open a $120 million credit line to finance renewable energy projects for small and medium-sized enterprises (SMEs).
The agreement was signed between the European Investment Bank (EIB) and the Trade and Development Bank of Eastern and Southern Africa (TDB), a commercial bank owned by the Member States of COMESA, the World Bank (AfDB) and China on the sidelines of the 9th Summit of Heads of State and Government of African, Caribbean and Pacific (ACP) Countries.
The partnership agreement was signed by EIB Vice-President, Ambroise Fayolle and Admassu Tadesse, President and CEO of TDB. The agreement provides a line of credit to support small and medium-sized enterprises (SMEs) investing in renewable energy and energy efficiency.
Companies have the means to bypass power grid failures and even save on their electricity bills with the energy revolution brought by solar and off-grid energy. The credit line should enable the acquisition of these environmentally friendly systems as it will last for a term of 15 years.
“The largest cooperation ever between the EIB and the TDB will enable SMEs to invest a total of EUR 240 million in renewable energy on a continental level. Increasing climate-related private sector investment is the key to climate action and saving our planet,” says Ambroise Fayolle.
CEO of TDB Admassu Tadesse said that “70% of our energy portfolio is made up of renewable energies. And, in addition to our regular operations, we recently launched a program to close the financing gap for SMEs. Our multifaceted partnership with the EIB will enable us to intensify our commitment to achieving good results in the region we serve: Eastern and Southern Africa.”
Trade and Development Bank is headquartered in Bujumbura, the capital of Burundi. The bank has been very active in recent months with its investments in renewable energy. In June this year, it announced talks with independent power producers (IPPs) for the development of the Menengai geothermal project in Rift Valley, Kenya.
The Trade and Development Bank is also financing the Nyagak hydroelectric project in the town of Nyapea in northwestern Uganda. The project will produce 6.6 MW.
Source: The Exchange