The U.S African Development Foundation (USADF) and All-on have partnered to develop, scale up and promote the use of renewable off-grid energy technologies to reach communities not served by existing power grids in Nigeria.
Mr C.D Glin, the President/CEO of USADF told journalists in Lagos that the All On-USADF collaboration would co-finance innovative Nigerian off-grid energy companies to boost renewable energy development in Nigerian communities.
Glin said that the three year partnership would empower up to 30 indigenous companies in the country within three years to champion the project.
According to him, under the partnership, the USADF provides 50,000 dollars in seed capital while All-on also provides 50,000 dollars in convertible debt to each of the selected energy enterprises in the first year.
“Another set of companies will also enjoy same privileges in the second year and later in the third year.
The USADF project is to develop local content in Nigeria’s power sector and boost local company’s participation in increasing renewable energy in the country.
He said that the 50,000 dollars is a grant aimed at taking care of the risk associated with new businesses.
“However, to ensure effective management of resources, the beneficiaries will also receive technical assistance from USADF and governance support from All On.
“We are proud to partner with All On to foster the growth of local enterprises to bring power and connectivity to underserved Nigerians.
“This partnership combines grant capital with private sector funding to support the selected Nigerian energy enterprises with means to grow their businesses, increase access to power and change people’s lives,’’ Glin added.
He said that USADF is an independent U.S. government agency established by congress to support African-owned community and social enterprises which improve lives and livelihoods in underserved communities.
He said that it’s also targeted at utilising a community-led development approach, adding that USADF invests directly to provide seed capital and local project management assistance to early stage enterprises addressing local challenges such as food security, energy access and women and youth operations.
According to him, annually, our grant assistance for enterprise development and expansion generates approximately 100 million dollars in new local economic activity throughout Africa’s Sahel,
Dr Wiebe Boer, the Chief Executive Officer of Nigeria based All-on, an off-grid energy impact investment company backed by Shell said that “The biggest challenge hindering Nigeria’s economic and social development is access to energy.
“ These off-grid energy companies are introducing innovations that will improve household livelihoods and local economies by providing affordable power to unserved and underserved communities.
“We are proud to partner with USADF to provide an innovative blend of financing to these companies to enable them to scale up and meet the increasing demand,’’ he said.
Boer said that All- On is an independent impact investing company, seeded with funding from Shell, and works with partners to increase access to commercial energy products and services for under-served and un-served off-grid energy markets in Nigeria, with a special focus on the Niger Delta.