Nigeria’s Daystar Power has raised $38 million from Investment Fund for Developing Countries and Morgan Stanley to expand solar access across West Africa. Furthermore, the funding will allow it to ensure its growth in key markets such as Nigeria and Ghana, and venture in new markets, including Togo, Côte d’Ivoire, and Senegal.
According to Daystar Power, they aim to expand its installed power capacity to 100 megawatts from the current 23 megawatts.
As the largest potential market for mini-grid in West Africa, Nigeria has received close to $374 million in the past 10 years from international donors for mini-grid development. As of 2019, the country had a small-grid capacity of 2.8 megawatts, with 52 of the 59 projects solar-powered. Additionally, only 55% of its population is connected to the national grid, and they still experience power cuts of up to 15 hours each day.
Bloomberg reports that STOA, a French impact infrastructure fund and one of Daystar backers, is looking to invest over 50% of its capital in renewable energies across Africa. The joint-stock company has an initial share capital of 240 million euros.