Unlocking Sustainable & Structural Investments For An Inclusive & Green Development of Madagascar
An ecosystem of financial instruments, including Madagascar's first sovereign wealth fund, will invest in small, medium and large renewable energy projects.
Despite Madagascar's rich natural resources, and its potential for renewable energy, it is one of the top 20 countries with the largest number of people unable to access clean fuels and technologies. Only 16.5% of the population has access to an electricity grid, a number that drops to 6.2% in rural areas. Because Madagascar's renewable energy potential remains largely untapped, many people rely on kerosene and other inefficient sources for energy, which has contributed to the loss of 70% of Madagascar's forest cover and causes 10.7% of premature deaths through the resulting indoor pollution.
This programme takes an ecosystem approach to finance renewable energy projects in Madagascar. By 2030, this programme aims to ensure that at least 5% of Madagascar's energy grid uses renewable energy, while simultaneously expanding access to electricity and supporting renewable energy businesses. The programme aims to provide access to affordable and sustainable energy to at least 80,000 individuals, while simultaneously increasing Madagascar's solar capacity by at least.
The programme targets three different needs in the renewable energy sector. The sovereign fund will finance large sustainable energy infrastructure projects, while the de-risking facility provides concessional capital to medium sized businesses, and the incubator will provide technical assistance and grants to smaller energy start ups. A pipeline of 59 projects has already been identified as candidates for the Sustainable Energy Incubator.
The joint programme is expected to start in April 2022, after the completion of the design and pre-feasibility phase in 2021.
UNDP, UNIDO, UNCDF
Ministry of Energy and Hydrocarbons, ANKA Madagascar, GEF Africa Minigrid Project (AMP), GIZ – PERER Project, Rurale Electrification Agency (ADER)