To improve South Sudan’s telecom infrastructure using mixed power solutions, Finnfund, a Finnish organisation that helps with development finance, has agreed to give Communication & Renewable Energy Infrastructure (CREI) a $5 million bridge loan. This project is expected to significantly improve the use of solar energy while lowering the reliance on diesel engines.
South Sudan has one of the world’s least stable telecom networks, but the project might improve cell coverage for almost 2 million people.
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Africa Connected: Finnfund’s Nairobi Manager’s Key Takeaways
Finnfund’s Nairobi office manager, Valtter Louhivuori, stressed the importance of this initiative as a foundational step for Africa Connected, where Finnfund implements the EFSD+ Guarantees. Africa Connected accelerates investment in digital infrastructure and technologies that benefit Africa.
Louhivuori further noted that enhanced mobile connectivity catalyses economic advancement, elevating living standards and fostering inclusivity. It does so by granting improved access to essential financial services, education, and healthcare services.
The investment for this venture also includes contributions from the Facility for Energy Inclusion (FEI), managed by Cygnum, and the ieng Group’s asset management arm, CREI. These funds are earmarked to finance the operations of CREI’s Telecom Energy Service Company in South Sudan.
With this financial backing, CREI is set to offer “energy as a service” to a critical telecom player in South Sudan. This involves developing, constructing, operating, and maintaining the necessary energy infrastructure, thereby enabling a more sustainable and reliable power supply for the telecom sector.
About CREI
CREI is a global asset management company that manages telecom towers and renewable power assets in Africa and Asia. It provides sustainable energy and connectivity to Mobile network operators (MNOs) and rural communities, leveraging its affiliated companies’ expertise to deliver integrated solutions along the value chain.
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About Cygnum Capital Group
Cygnum Capital Group is an investment bank and asset manager operating in frontier and emerging markets. They manage five pioneering funds: the African Local Currency Bond Fund, Off-Grid Energy Access Fund, FEI, AfricaGoGreen Fund, and E3 Low Carbon Economy Fund for Africa. With over USD830 million in assets under management, they invest in 32 African countries and support companies in climate-smart services and low-carbon productivity enablers.
About FEI
The Facility for Energy Inclusion (FEI) is a program established by the African Development Bank (AfDB) to support small-scale independent power producers. It has received funding from the German Federal Ministry for Economic Cooperation and Development, the Austrian Development Bank, the IFC, the Clean Technology Fund, and the European Commission. The FEI’s Project Preparation Facility provides returnable grant funding for closing transactions.