FMO invests $10m in Nithio to support clean energy solutions in Africa
TLDR
- FMO has provided $10 million funding to Nithio's investment vehicle, FAIR, which focuses on financing clean energy solutions for households and small businesses in Africa.
- FAIR has already supported 11 investments, benefiting over 400,200 people and 12,100 individuals with energy products for their enterprises.
- With FMO's investment, Nithio plans to expand financial support for distributors of solar home systems and productive use appliances, including lighting, communication, irrigation, and cooling systems, promoting sustainable energy solutions and expanding access to clean energy in the African market.
The Dutch Entrepreneurial Development Bank, FMO, has extended funding of $10 million to the climate fintech platform Nithio for its investment vehicle, FAIR (Facility for Adaptation, Inclusion, and Resilience). FAIR focuses on providing financing to companies delivering clean energy solutions to households and small enterprises in Africa.
Through FAIR, Nithio has already executed 11 investments, facilitating energy access for over 400,200 people and supporting 12,100 individuals with products for their enterprises. With FMO's investment, Nithio aims to scale its financial support to distributors of solar home systems and solar productive use appliances. These include various applications such as lighting, communication, irrigation, and cooling systems for both households and businesses.
The funding infusion reflects a commitment to fostering sustainable energy solutions and expanding access to clean energy in the African market, addressing both household needs and supporting small enterprises.
Key Takeaways
Africa stands as the least climate-resilient continent globally, grappling with unprecedented challenges like rainfall extremes, droughts, and flooding that have impacted over 215 million people in the past decade. The escalating climate shocks across the continent underscore the urgent need for enhanced resilience measures. In this context, improved energy access plays a pivotal role in enabling communities to build resilience against the adverse impacts of climate change. Through their collaborative efforts, Nithio and FMO aspire to amplify financing directed toward addressing Africa's climate and energy requirements. The objective is to ensure that vulnerable households and small enterprises receive the necessary resources and investments to enhance their climate resilience. By scaling up support for clean energy solutions and fostering sustainable practices, the partnership aims to contribute significantly to building resilience in the face of the escalating climate challenges experienced by the African continent.
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