Sudanese bank, Sanabel, a subsidiary of the Bank of Khartoum, has launched what it called the country’s first green Sukuk (bond), which are compliant with Islamic banking principles. The bonds are aimed at providing finance for the commercial deployment of renewable energy.
The £SD4.75 billion fund ($11.3 million) will provide finance for the development of projects in the agriculture and mining industries. These clean energy projects will have a cumulative capacity of 55MWh daily. The fund is supported by the Nahda Company for Sustainable Development and the Arab-African Company and will be split into Sukuk worth £SD500 each.
Recently, there has been an increase in renewable energy investment in the East African country. About $500 million have been invested in solar power 500MWh, according to investor Saurest Investment.
Over 60% of Sudan’s population do not have electricity access. Recent subsidy costs and inflation have made fossil fuels for generators even more scarce, leading many Sudanese to adopt renewable energy options such as solar.