Page 9 - DMEA Week 25 2022

DMEA FUELS DMEA

IFC deepens ties with Sodigaz for

supply of clean, reliable energy

AFRICA WITH the aim of boosting access to cleaner and limiting social and economic development,
more reliable energy in Burkina Faso, including with much of the population of 21m reliant
for rural households, the International Finance on wood and charcoal for cooking. Increasing
Corporation (IFC) has announced a local cur- access to gas and solar will provide householders
rency financing package for Sodigaz, one of the with cleaner, healthier, more reliable sources of
country’s leading energy companies. energy. “IFC’s support will help strengthen Sod-
IFC’s support will help Sodigaz increase the igaz’s capabilities, bring to fruition structuring
distribution of liquified petroleum gas (LPG) projects, enhance its operational efficiency, and
to underserved rural households across Bur- develop households’ access to clean cooking and
kina Faso and bring solar energy to a 1,000- solar energy solutions in Burkina Faso,” said Lala
unit affordable housing project near the capital, Bolly, Chief Executive Officer of Sodigaz.
Ouagadougou, contributing to better health out- Olivier Buyoya, IFC’s Country Manager for
comes and supporting the country’s transition to Burkina Faso, said improving access to clean
cleaner energy. energy solutions for better economic and health
The €12.4mn financing package announced outcomes is a priority for IFC in Burkina Faso.
on June 16 consists of a local currency loan up “IFC is proud to support a local champion’s
to the equivalent of €8.4mn in CFA francs from ambition to support cleaner energy supply in
IFC’s own account and a parallel loan equivalent Burkina Faso through investment in renewable
to €4mn in CFA francs mobilized from a partner energies and accelerating the switch to cleaner
commercial bank. The investment will support LPG from solid fuels,” he said.
the expansion of Sodigaz’s LPG distribution IFC’s investment is supported by the Interna-
infrastructure in rural and urban areas and the tional Development Association (IDA) Private
construction of a 1.54 MWp (megawatt-peak) Sector Window (PSW) Local Currency Facility
solar plant. (LCF), through guarantees and cross-currency
Only about 20% of the population of Bur- swaps. The IDA PSW LCF helped provide long-
kina Faso is connected to the grid (around 65% term financing in CFA francs that would not oth-
in urban areas and less than 5% in rural areas), erwise be readily available in the local market.™

Ethiopia denies fuel

shortage amid aid delays

AFRICA ETHIOPIA has denied a report by the Euro- comes to Mekelle cannot reach rural areas where
pean Union which stated that a lack of fuel is the needs are highest,” Lenarcic is quoted as say-
preventing the delivery of humanitarian aid to ing. “So now we have a situation where human-
Tigray, the famine-struck region in the north of itarian houses in Mekelle are full, but the people
the country. out there in the countryside are still hungry.”
Speaking to Voice of America, a spokes- The war between the Ethiopian federal gov-
woman for Ethiopia’s prime minister, Billene ernment and the rebel Tigray People’s Liberation
Seyoum, called the report a “myth” perpetuated Front, which started in November 2020, has left
by the Tigray People’s Liberation Front (TPLF) many on the brink of famine. This March, Addis
“to enhance mobility of its army in preparation Ababa announced a humanitarian truce to allow
for another round of conflict.” aid into Tigray.
On June 21, European Union Commissioner According to the prime minister, the aid
for Crisis Management Janez Lenarcic said that can flow through freely, and the fuel crisis isn’t
Tigrayans were not getting enough aid due to a real issue. “So, the myth of fuel shortage is a
fuel shortages, as there were enough lorrie to TPLF hidden agenda to enhance mobility of its
bring aid to Tigray. army in preparation for another round of con-
“There’s a need to lift restrictions, especially flict. Hence, there are no fuel sanctions and such
on the provision of fuel. More fuel is needed claims need to be reviewed with clarity on the
because without it, even this food assistance that reality,” Seyoum said.™

Week 25 23•June•2022 www. NEWSBASE .com P9