IFC Backs $5mn Investment In Husk Power For Solar Mini-Grid

IFC Backs $5mn Investment In Husk Power For Solar Mini-Grid

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a $5 million investment in Husk Power Energy Systems Nigeria Limited to support the rollout of solar hybrid mini-grids in underserved communities across northern Nigeria.

The financing, backed by the Government of Canada, is aimed at expanding access to reliable and renewable electricity in a country with the world’s largest electricity access deficit.

1st Investment Under DARES

The project marks the first investment under IFC’s Distributed Access through Renewable Energy Scale-up (DARES) Platform, a $200 million facility launched in November 2024 to scale private-sector clean energy projects across West and Central Africa.

The investment will support Husk Nigeria—a subsidiary of US-based Husk Power Systems Inc.—to develop and operate up to 108 mini-grid sites, creating around 28,750 new electricity connections and providing clean energy to an estimated 115,000 people and businesses.

“This innovative facility is exactly what the mini-grid sector needs—blended, long-term, and affordable capital,” said Manoj Sinha, co-founder and CEO of Husk Power Systems.

World Bank-funded Project

The DARES Platform complements the World Bank-funded Nigeria DARES Project, a $750 million initiative launched in December 2023 and implemented by the Rural Electrification Agency, aiming to deliver electricity to 17.5 million people through decentralized renewable energy systems.

The total project cost is estimated at $25 million. IFC’s $5 million contribution includes a $2.5 million senior loan and a $2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Program for Africa. The financing is structured as a revolving loan, allowing for repayments and re-disbursements throughout the project cycle.

“By partnering with Husk under the DARES Platform, we are not only addressing urgent energy needs in Nigeria but also building a scalable model for Africa,” said Ethiopis Tafara, IFC Regional Vice President for Africa.

Electricity Poverty 

Nigeria, despite being Africa’s largest economy, has over 85 million people living without electricity. Frequent outages also force many to rely on expensive, polluting diesel generators.

The DARES Platform also supports gender inclusion and aims to reach female-headed households, women-led businesses, and promote jobs for women in the energy sector. It aligns with Mission 300, a World Bank and African Development Bank initiative to bring electricity to 300 million Africans by 2030.