Dutch development bank FMO is providing 55 million euros ($62 million) in loans to support one of Côte d’Ivoire’s first privately owned solar power projects, according to documents seen by DevFiNews.
The transaction comes as development finance institutions step in to bridge long-term funding gaps for renewable infrastructure in frontier African markets.
FMO said the financing will support Kong Solaire S.A.S, a special-purpose vehicle developing a 50-megawatt-peak photovoltaic plant and related transmission infrastructure near the village of Kong in northern Côte d’Ivoire under a 25-year concession agreement with the government.
FMO will extend a 20-year senior secured loan of 50.5 million euros for the solar plant, alongside a separate 4.5 million-euro facility for transmission infrastructure that will eventually be transferred to the Ivorian government upon completion.
The project is owned 51% by InfraCo Africa, part of the Private Infrastructure Development Group, and 49% by AfricaVia, which is partly owned by Axian Energy Green.
The deal underscores the role of development finance in mobilising private capital for African power infrastructure, particularly in markets where currency risks, shallow debt markets and political uncertainties limit commercial bank participation in long-dated projects.
FMO said its financing tenor, which extends up to 20 years, is not available in Côte d’Ivoire’s local commercial banking market.
The longer maturity is expected to help the project sell electricity to the national utility at a more attractive tariff.
The solar plant is also expected to generate electricity at a lower cost than existing thermal power stations using natural gas and heavy fuel oil, while supporting Côte d’Ivoire’s efforts to expand generation and grid capacity in the country’s northern region.
The investment has been given a 100% green label by FMO, aligning with the lender’s sustainability strategy.
FMO classified the project as category B+ for environmental and social risks.
Key concerns include worker health and safety, contractor management, ecosystem-service impacts, economic displacement and community health and safety during construction.
The lender said risks are expected to be managed through measures including a livelihood restoration plan and community development plan.
An updated environmental and social impact assessment will be completed before construction begins, FMO added.