IFC, with Canada's Support, Backs Husk Nigeria's Mini-Grid Expansion with USD 5 Mn Investment The financing package, including USD 2.5 million senior loan and USD 2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Program for Africa, will fund up to 108 solar hybrid mini-grid projects.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The International Finance Corporation (IFC), a member of the World Bank Group, has announced USD 5 million investment in Husk Power Energy Systems Nigeria Limited (Husk Nigeria), a subsidiary of Husk Power Systems Inc. The investment, made with support from the Government of Canada, aims to expand access to reliable and renewable energy in Northern Nigeria—one of the regions most affected by energy poverty.
This marks the inaugural investment under the IFC's Distributed Access through Renewable Energy Scale-up (DARES) Platform, a USD 200 million debt facility launched in November 2024 to drive private sector-led energy access across West and Central Africa.
"This innovative debt facility is exactly what the mini-grid industry needs to scale—blended, long-term, and affordable capital," said Manoj Sinha, Co-founder and CEO of Husk. "Access to working capital is critical for sustained and rapid growth."
The financing package, including USD 2.5 million senior loan and USD 2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Program for Africa, will fund up to 108 solar hybrid mini-grid projects. The initiative is expected to bring clean, affordable energy to approximately 115,000 people and businesses, creating 28,750 new electricity connections. The total project cost is estimated at USD 25 million.
"Adding 108 new communities to our mini-grid 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, Manager, Husk Nigeria.
The DARES Platform is closely aligned with the World Bank's USD 750 million Nigeria DARES Project, implemented by the Rural Electrification Agency, and is part of a broader strategy to improve electricity access for 17.5 million Nigerians. It also supports the World Bank Group and African Development Bank's Mission 300, which seeks to provide electricity to 300 million Africans by 2030.
"The DARES Platform is an innovative approach to tackling one of Africa's most pressing challenges—energy access," said Ethiopis Tafara, IFC's Regional Vice President for Africa. "By partnering with Husk, we are not only addressing immediate electricity needs but also building a scalable model for sustainable development across the continent."
Husk's AI-powered hybrid mini-grids reduce reliance on diesel generators, offering users at least 25% in energy cost savings while cutting greenhouse gas emissions—an essential step toward a greener, more inclusive future.
