New Delhi: The Multilateral Investment Guarantee Agency (MIGA) and the International Solar Alliance (ISA) have launched the MIGA-ISA Solar Facility, a multi-donor trust fund aimed at accelerating solar energy adoption. The facility will provide concessional financing tools, including first-loss instruments and reinsurance, to improve project bankability and lower the cost of MIGA guarantees. Initially, it will focus on Sub-Saharan Africa, with plans for global expansion.
The ISA has committed $2 million in seed funding, targeting $10 million for the facility. “ISA is excited to collaborate with MIGA for providing cost-effective guarantee solutions for decentralized solar projects in Africa,” said Dr. Ajay Mathur, Director General, ISA.
The facility will also help MIGA scale up its guarantee issuance, mobilizing private capital for solar and distributed energy projects. It is the first program under ISA’s Global Solar Facility, which has a $200 million target for Africa.
MIGA and ISA previously collaborated on a solar project in the Democratic Republic of Congo, where MIGA guarantees and ISA financing reduced operating costs by about 20%, leading to lower tariffs. Approximately 675 million people lack access to electricity, and without significant efforts, 660 million are projected to remain without power by 2030.
“MIGA is excited to host the MIGA-ISA Solar Facility and support Sub-Saharan Africa in accessing reliable and clean electricity,” said Hiroshi Matano, Executive Vice President, MIGA.
The World Bank and African Development Bank aim to provide electricity access to 300 million people in Africa by 2030. ISA, with 119 member countries, is focused on rolling out its Global Solar Facility to provide cost-effective financing for solar projects, starting with Africa. The Africa Facility is targeted at $200 million for guarantee, insurance, and investment components.
