Page 9 - AfrElec Week 25 2022

AfrElec INVESTMENT AfrElec

Burkina Faso: IFC, Sodigaz

deepen partnership to supply

clean, reliable energy

BURKINA FASO WITH the aim of boosting access to cleaner and with much of the population of 21m reliant
more reliable energy in Burkina Faso, including on wood and charcoal for cooking. Increasing
for rural households, the International Finance access to gas and solar will provide householders
Corporation (IFC) has announced a local cur- with cleaner, healthier, more reliable sources of
rency financing package for Sodigaz, one of the energy.
country’s leading energy companies. “IFC’s support will help strengthen Sodi-
IFC’s support will help Sodigaz increase the gaz’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.™
limiting social and economic development,

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