MIGA Secures $50.3M for Nuru’s Solar Grids in DRC

  • MIGA backs Nuru’s Goma, Kindu, and Bunia solar grids, targeting 28,000 households.
  • Nuru raises $40M Series B with IFC, Proparco, and others.
  • MIGA mitigates risks, boosting renewable energy in unstable DRC regions.

The Multilateral Investment Guarantee Agency (MIGA) issued a $50.3 million guarantee to Congo Energy Solutions (Nuru) to build solar-powered electricity grids in the eastern Democratic Republic of Congo (DRC). Based in Goma, Nuru aims to deploy 15 MW of capacity in Goma, Kindu, and Bunia, bringing power to 28,000 households and businesses.

This investment follows a $40 million Series B financing round with contributions from the International Finance Corporation (IFC) and Proparco, a subsidiary of the French Development Agency (AFD). Nuru will establish its most extensive network in Bunia.

Additional funding comes from the Renewable Energy Performance Platform (REPP), the Global Energy Alliance for People and Planet (GEAPP), E3 Capital, and the GAIA Impact Fund. French renewable energy firm Voltalia, the Schmidt Family Foundation, and the Joseph Family Foundation invested in Nuru during the Series B round.

The solar grids aim to enhance power access in the DRC, a region facing ongoing conflict, including threats from the M23 rebellion. Nuru’s directors remain optimistic about the project’s stability despite these challenges.

MIGA’s guarantees mitigate risks for investors, particularly expropriation, with separate coverage for each mini-network.

Nuru’s project aligns with broader efforts to improve energy access in fragile states. The hybrid solar grids use solar and battery storage to provide consistent power. This approach supports the DRC’s energy needs while addressing environmental concerns.

The investment shows growing confidence in renewable energy’s role in developing sustainable infrastructure in conflict-affected regions. MIGA’s involvement underscores its commitment to facilitating private sector investment in challenging environments.

By mitigating risk, MIGA encourages investment in regions where political instability might deter investors. This guarantee supports MIGA’s strategy to back renewable energy and enhance economic resilience in the DRC.

The initiative will transform the energy landscape in eastern DRC, providing reliable electricity in areas with limited infrastructure. It represents a significant step toward meeting the DRC’s energy needs and supporting economic growth.

The participation of international investors highlights the project’s potential to attract further investment in the region. Nuru’s solar networks will integrate with existing infrastructure, enhancing local energy systems.

This model could serve as a blueprint for similar projects in other conflict-prone areas. The project’s success could demonstrate the viability of renewable energy solutions in challenging environments, potentially leading to more investments in the sector.

Despite the region’s instability, MIGA’s $50.3 million guarantee for Nuru’s solar grids marks a pivotal development in expanding energy access in eastern DRC. The project highlights renewable energy’s potential to drive economic growth and development in fragile states.

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