(Ecofin Agency) - Dutch development bank FMO,  which supports private companies in developing countries, and Swiss investment firm Symbiotics, specialised in sustainable and inclusive financing, will jointly invest about $32.5 million in the coming five years in renewable energy firm Zola Electric.

FMO, via its investment fund Access to Energy Fund (AEF), which funds renewable energy production, transport and distribution projects, provided $5 million while Symbiotics invested $15 million and the remaining $12.5 million was provided via the mechanism FMO-A (Active) that mainly invests in low and middle-income countries in Africa, Asia, the Middle East, Eastern Europe and Latin America.  

The Tanzanian firm that deploys its energy solutions in five African countries (Nigeria, Tanzania, Rwanda, Côte d’Ivoire, and Ghana) will use the fund to provide solar power to 146,000 households not connected to the national electricity grid.

Apart from financing, FMO owned by the Dutch government and some commercial banks will also offer Zola Electric technical assistance for the establishment of credit risk rating system in the country.  

Chamberline Moko