IFC, Canada Invest In Husk To Catalyse Solar-powered Economic Growth In Rural Areas

The International Finance Corporation (IFC), a member of the World Bank Group, with the support of the government of Canada, has announced a $5 million investment in Husk Power Energy Systems Nigeria Limited (Husk Nigeria), a subsidiary of Husk Power Systems Inc., to expand access to reliable, renewable energy in underserved communities across Nigeria.

The financing will support the rollout of Husk’s portfolio of solar hybrid mini grids in Northern Nigeria, helping address one of the country’s most urgent development challenges: access to electricity. It marks the first investment under the IFC Distributed Access through Renewable Energy Scale-up (DARES) Platform, a $200 million debt facility approved in November 2024 to catalyse private sector solutions across West and Central Africa.

The DARES Platform complements the World Bank-financed Nigeria DARES Project, a $750 million initiative launched in December 2023 and implemented by Nigeria’s Rural Electrification Agency. Together, these efforts aim to provide over 17.5 million Nigerians with new or improved electricity access through decentralised renewable energy (DRE) systems.

IFC’s financing package will enable Husk to develop and operate up to 108 mini-grid sites, resulting in approximately 28,750 new electricity connections and delivering clean, affordable energy to around 115,000 people and businesses. Husk’s solar hybrid mini-grids offer a cost-effective alternative to diesel generators, providing users with at least 25% in cost savings while significantly reducing greenhouse gas emissions.

The total project cost is estimated at $25 million. IFC’s $5 million package includes a $2.5 million senior loan from its account and a $2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Programme for Africa. The facility is structured as a revolving loan, allowing Husk to repay and redraw funds multiple times during the project’s implementation.

“The DARES Platform is an innovative approach to tackling one of Africa’s most pressing challenges—energy access. By partnering with Husk, a leading renewable energy developer globally, through the first project under the DARES Platform, we are not only addressing the immediate electricity needs of underserved communities in Nigeria but also laying the foundation for a scalable model that can be replicated across the continent. This initiative underscores IFC’s commitment to advancing sustainable energy solutions through strong partnerships between the private sector, governments, and development institutions,” said Ethiopis Tafara, Regional Vice President of Africa, IFC.

“This innovative debt facility is exactly what the minigrid industry needs to scale — blended, long-term and affordable capital,” said Husk Co-Founder and CEO Manoj Sinha. “Access to working capital is critical for sustained and rapid growth. Adding 108 new communities to our minigrid portfolio with IFC support is an important step toward our goal of deploying at least 250mw of decentralised renewable energy projects in Nigeria,” said Olu Aruike, country director, Husk Nigeria.

Despite being Africa’s largest economy, Nigeria has the world’s highest electricity access deficit, with over 85 million people living without power. Even those connected to the national grid often experience unreliable supply, prompting widespread reliance on expensive and polluting diesel generators.

The DARES Platform supports the World Bank Group and the African Development Bank’s Mission 300, launched in April 2024. This initiative aims to bring electricity access to 300 million people across Africa by 2030. The platform also promotes gender inclusion and productive energy use, focusing on reaching female-headed households, supporting women-led MSMES, and enabling job creation for women in the energy sector.