- The EIB disbursed €10 million between April and June 2023.
- The funds will help WeLight make progress with the development and construction of solar mini-grids in 120 rural villages in Madagascar.
- The project will give more than 45 000 households and businesses first access to sustainable, affordable and productive energy.
The European Investment Bank (EIB) today announced the disbursement of a €10 million loan to WeLight Madagascar for the development and construction of solar mini-grids in currently unconnected villages.
A signing ceremony to confirm this financing was attended by the European Union’s Ambassador in Madagascar and the country’s Minister of Energy and Hydrocarbons during the visit of the EIB Vice-President with responsibility for private sector project financing in Madagascar, demonstrating the importance that the European Union attaches to this programme.
The new mini-grids will provide people in unconnected rural villages with access to clean, affordable energy. In addition to private homes and businesses, the project will benefit schools, health centres and public spaces, thus boosting the local economy and improving health, safety and education.
Comprising a solar power plant, an energy storage system and a distribution line and meter for each customer, a mini-grid can provide electricity 24/7. The 120 additional villages in 17 regions were identified in collaboration with Madagascar’s Ministry of Energy and the country’s Agency for the Development of Rural Electrification (ADER).
EIB Vice-President Ambroise Fayolle said: “We are proud to fund this project, which will improve the standard of living for hundreds of thousands of people in rural parts of Madagascar, and to see the progress already made. The EIB, the EU climate bank, is committed to promoting clean, sustainable energy that will help businesses and the local economy as well as families and the community as a whole.”
Managing Director of WeLight Madagascar Romain de Villeneuve said: “Since it was founded in 2018, WeLight has made extraordinary progress made possible by its many trusted partners: original shareholders Axian, Norfund and Sagemcom and, more recently, prominent lenders that have disbursed €19 million for a project concerning a further 120 villages in Madagascar, namely the European Investment Bank, Triodos Investment Management and EDFI ElectriFI. The rural electrification adventure is just beginning!”
EU Ambassador in Madagascar Isabelle Delattre Burger said: “I am pleased that the European Union is supporting both private operators, such as WeLight, and the Madagascar state in its efforts to increase access to electricity, including in areas where opportunities and income levels remain low. Together with the EU Member States, the European Investment Bank is a key partner in terms of implementing the Global Gateway strategy, which promotes investment in quality infrastructure according to the highest environmental and social standards and in line with the values and standards of the European Union.”
The EIB loan, which was announced in January, is part of a €19 million joint investment with Triodos Investment Management and EDFI ElectriFI, the EU-funded electrification financing initiative.
Background information
About the European Investment Bank
The European Investment Bank is the world’s largest multilateral financing institution and one of the world’s leading climate finance donors. Since 1970, the EIB has lent a total of €904 million in support of long-term investments in Madagascar for key infrastructure as well as for the private sector.
EIB Global is the specialised arm of the EIB Group designed to increase the impact of international partnerships and development finance and a key partner in the Global Gateway strategy. It aims to support €100 billion in investment, or around one third of the overall target of this EU initiative, by the end of 2027. EIB Global is designed to foster a strong, focused partnership within Team Europe alongside other development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through its offices across the world.
About Global Gateway
Global Gateway is the EU strategy designed to boost smart, clean and secure links in the digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Global Gateway is delivered through a Team Europe approach, which brings together the European Union, its Member States and their financial and development institutions to mobilise the private sector and leverage investments for a transformational impact. It aims to generate up to €300 billion in investments. Global Gateway is fully aligned with the UN 2030 Agenda and its Sustainable Development Goals, as well as the Paris Agreement.
About WeLight
Founded in 2018, WeLight provides clean, affordable, reliable and productive energy to people in remote rural areas in Madagascar and sub-Saharan Africa. WeLight is aimed at isolated villages and contributes significantly to their socioeconomic development. The company relies on field knowledge and technological know-how, combining mini-grids and renewable energy sources conducive to the energy inclusion of villages. WeLight is the first company in Madagascar to have obtained B Corp certification, a prestigious international designation awarded to companies that meet the most demanding social and environmental standards.