Husk Power closes $20 million in financing from the European Investment Bank (EIB) to scale in Nigeria

UGO AMADI

Largest-ever corporate debt financing for community solar minigrid industry in Sub-Saharan Africa.

Thousands of businesses and homes will benefit.

Today, Husk Power Systems (“Husk”) said that it has obtained $20 million in debt financing from the European Investment Bank (EIB) to scale its operations in Nigeria. This is the first time that a minigrid company has accessed corporate-level debt, and also the single largest debt financing for minigrids in Sub-Saharan Africa.

The investment will fund construction of community solar minigrids in Nigeria, installation of rooftop solar for commercial & industrial (C&I) customers, expansion of appliance sales to households and small businesses and the scaling of value-added services such as agro-processing and e-mobility.

Currently, Husk has more than 20 minigrids operational in Nigeria, and has set a target of having at least 500 minigrids in the country within the next 5 years. Nigeria is the world’s largest off-grid market, with about 90 million people still living without access to electricity and a massive dependence on expensive and polluting diesel generation.

The EIB financing is part of a $100 million Series D announced by Husk in October 2023.

Manoj Sinha, Husk’s Co-Founder and CEO, commented: “Affordable, long-term and sufficient debt is critical for rapidly scaling decentralized, renewable and climate-resilient energy infrastructure in Nigeria and the rest of Sub-Saharan Africa. EIB has taken a leadership position in filling this need. We are grateful for EIB’s foresight and we look forward to working with them more closely to positively impact millions of people who are currently unserved and underserved.”

Referring to the financing, Ambroise Fayolle, Vice President, European Investment Bank (EIB) said: “The European Investment Bank is committed to strengthening access to affordable and clean energy across Africa and pleased to provide USD 20 million for the development of new minigrids in 150 rural communities across Nigeria by partner Husk Power Systems. Thousands of homes and businesses will benefit from more reliable access to solar power and battery storage that eliminates the need for more expensive diesel generators. This latest cooperation follows recent EIB backing for private-led clean energy generation in Chad, Uganda, Kenya and Mozambique.”

Husk is an award-winning clean energy company serving rural and peri-urban Asia and Sub-Saharan Africa. In 2024, Husk was named one of Fast Company’s 50 Most Innovative Companies in the World, ranking #24 overall, and #1 in the energy category. In 2023, it was also named “World’s Best Challenger Brand” in the energy industry, and CEO Manoj Sinha was selected as a TIME 100 Most Influential Climate Leaders in Business. Husk’s AI-powered energy platform provides 24/7 renewable power to households, commercial customers, institutions and small factories. It also delivers a range of other products and services, including e-commerce and credit-financing of branded appliances for home and commercial use, as well as community-based solutions for e-mobility and the agricultural value chain. Husk’s mission is to superchange economic growth and social well-being in rural communities that are unserved and underserved

The European Investment Bank (EIB) is the lending institution of the European Union (EU) owned by its member states. It makes long-term finance available for sound and sustainable investments to help achieve EU policy objectives. The EIB has been a strong partner of African countries for 60 years. Over the past decade, the EIB has provided more than €28 billion for investments in innovative technologies, green energy, water, education, agriculture, telecommunications, health and companies in more than 40 countries on the continent.