The Multilateral Investment Guarantee Agency of the World Bank (MIGA) has issued a guarantee of $50.3 million to CES AC1 Limited of the Republic of Mauritius, a wholly owned subsidiary of Congo Energy Solutions Limited (CESL), to cover its equity and quasi-equity investments into Nuru SASU of the Democratic Republic of Congo (DRC). The guarantee protects CESL against the risks of expropriation, transfer restriction, and war and civil disturbance for a period of up to 15 years.
CESL is developing, building, and operating solar hybrid mini-grid projects through Nuru SASU in DRC to generate up to 15 MW of electricity. Once completed, the project will provide more affordable and reliable electricity to around 28,000 households and businesses that currently have expensive, unreliable, unsustainable, or no access to electricity. CESL is also seeking to develop and operate multiple mini- and metro-grids in the country, with a combined capacity of up to 39 MW.
MIGA’s $50.3 million guarantee to CESL is the first in a series for the project and further support from MIGA is expected in the months ahead.
"MIGA is proud to support DRC’s efforts to provide affordable and sustainable energy to its people and businesses,” said Hiroshi Matano, Executive Vice President of MIGA. “Access to reliable energy is a crucial precursor to a country’s economic development. I hope that this project will catalyze more private sector investment in the country’s energy sector.”
In November 2022, the World Bank announced an initiative to accelerate the pace of electrification in Africa to achieve universal access by 2030, called the DARES initiative. Investing in mini-grids through this project is well-aligned with the DARES initiative, and the DRC is one of the initial focus countries.
Private sector-led mini-grids are central to DRC’s strategy to accelerate access to electricity to meet its access target of 30 percent by 2024. IFC supported the project through the scaling mini-grid DRC advisory, as well as a commitment to provide US$10 million mezzanine equity investment in Nuru SASU. The project has also benefitted from risk-sharing support from World Bank International Development Association’s Private Sector Window and MIGA’s Renewable Energy Catalyst Trust Fund which benefits from the support of the governments of Norway and Japan.
“MIGA’s guarantee coverage was a critical component for unlocking our investment capital. The catalytic cover MIGA is providing will enable tens of thousands of people living in eastern Congo to experience reliable, affordable, renewable energy to help build their lives and livelihoods,” said Jonathan Shaw, CEO and Founder of Nuru SASU.
MIGA was instrumental in encouraging private sector participation in addressing DRC’s power deficits in an environmentally and financially sustainable manner. The project provides a green and reliable source of electricity in areas that are not served or underserved by the national utility. The project will reduce GHG emissions by over 9,000 tons of CO2 per year.
With an electrification rate of 19%, DRC has the second-highest number of people without access to electricity globally (approximately 72 million) in the world. The project will contribute to increased access to electricity in fragile parts of DRC, primarily by improving electricity access for commercial and industrial, small and medium-sized enterprises and residential customers, who currently have no or unreliable access to electricity.
