Finnfund, the Finnish development finance institution, has committed to a $5 million mezzanine loan to Communication & Renewable Energy Infrastructure (CREI), aimed at bolstering the telecom infrastructure in South Sudan through the adoption of hybrid power solutions. This initiative is poised to substantially enhance the utilization of solar energy while reducing the dependency on diesel generators.
The project is set to have a far-reaching impact, potentially benefiting over 2 million individuals by improving the dependability of mobile connectivity in South Sudan, a nation currently recognized for having one of the least reliable telecom services in the world.
Valtter Louhivuori, who leads Finnfund’s Nairobi office, highlighted the significance of this project as a foundational step for the Africa Connected program, where Finnfund serves as an implementing partner for the EFSD+ Guarantees. The Africa Connected program is designed to expedite investment into digital infrastructure and solutions that have a meaningful impact on the African continent.
Louhivuori further noted that enhanced mobile connectivity is a catalyst for economic advancement, elevating living standards, and fostering inclusivity. It does so by granting improved access to essential services such as financial services, education, and healthcare.
The investment for this venture also includes contributions from the Facility for Energy Inclusion (FEI), managed by Cygnum, and the ieng Group’s asset management arm, CREI. These funds are earmarked for financing the operations of CREI’s Telecom Energy Service Company in South Sudan.
With this financial backing, CREI is set to offer “energy as a service” to a key telecom player in South Sudan. This involves the development, construction, operation, and maintenance of the necessary energy infrastructure, thereby enabling a more sustainable and reliable power supply for the telecom sector.
