US-based Development Finance Corporation (DFC) and Shell Foundation have released details about their collaboration, which aims to provide affordable renewable energy in Africa and Asia.
According to the two entities, the project will assist millions of people living in low-income areas by 2025.
Dev Jagadesan, Acting CEO, DFC, explained how the collaboration would work and said that it combines the financing tool from his company and Shell Foundation portfolio and experience. “The two teams will support companies and connect with people living in low-income areas to improve their lives,” he said.
Jagadesan added that DFC is excited to work hand-in-hand with Shell Foundation to deliver commercial financing and this project undertaking reflects a long-term and sustainable development plan that will prioritise women to help them empower themselves. “It is also an easy way of supporting economic growth in the countries as they respond to the COVID-19 pandemic,” he said.
Recently, IDFC signed up a memorandum of understanding (MoU), which will help them in the mission to assist in developing social enterprises. It will deliver necessary renewable energy services to families living on at least US$2 and US$10 daily in low-income areas. The help will enhance income, health, education and women’s economic empowerment in society.
From the MoU, it is clear that the Shell Foundation intends to offer over US$45 million grand funding by 2025. This vast amount aims to help countries invest in the pipeline of fast-growing and impact various businesses. The companies will work on delivering renewable energy to other companies, households and farmers.
DFC hopes to approve a massive amount of US$100 million during the first stages of debt and equity to aid the growth of these businesses. Statistics show that over 800 million people on the planet currently have no access to electricity. Also, over 2.8 billion people worldwide are struggling with unreliable power sources. The lack of power results in many struggles as countries try to recover from the COVID-19 pandemic and the economic growth rate is low.
The partnership is hoping to address the issue of lack of investment into the smaller and medium businesses with the main priority revolving around innovative companies that women own.
DFC and Shell Foundation are hoping the partnership can give opportunities to many, especially in the investment world. It is a way to provide a face to DFC thanks to the experience and portfolio of the Shell Foundation.Click below to share this article