International Finance Corporation (IFC), a member of the World Bank Group, and EDF Power Solutions have announced a significant $40 million financing deal aimed at expanding off-grid solar energy solutions across Africa. This strategic investment will primarily support the deployment of pay-as-you-go solar kits, crucial for providing electricity to households and small businesses that currently lack access.
This off-grid solar energy initiative comes at a critical juncture, as hundreds of millions of Africans still live without reliable electricity. The $40 million convertible loan agreement between the IFC and EDF Power Solutions is set to accelerate the availability of affordable and dependable clean energy in Africa. Ethiopis Tafara, IFC’s vice president for Africa, confirmed the agreement.
The financing structure for off-grid solar energy deployment is designed to foster large-scale deployment by combining direct IFC funding with capital mobilized from private investors. This approach aims to strengthen the off-grid energy market in Africa, aligning with Mission 300, a collaborative program by the World Bank and the African Development Bank that seeks to connect 300 million people to electricity by 2030. The pay-as-you-go model, which allows customers to acquire solar kits through installment payments, has proven instrumental in extending electricity access to low-income households, particularly in rural and underserved regions.
Access to electricity remains one of the most significant structural challenges facing the continent. The African Development Bank has reported that nearly 600 million Africans lacked electricity access as of 2025, with the majority residing in sub-Saharan Africa. This substantial gap has spurred considerable investment in decentralized energy systems, with off-grid solar solutions, mini-grids, and independent power producers emerging as key areas of growth.
Several large-scale initiatives are already in motion across the continent, including the African Development Bank’s New Deal on Energy for Africa, the ECOWAS Regional Off-Grid Electricity Access Project, and Mission 300. A progress report from November 2025 indicated that Mission 300 had successfully mobilized over $8.5 billion and established national energy compacts in 17 countries. The IFC’s investment in EDF Power Solutions is a component of its broader strategy focused on enhancing energy infrastructure in Africa.
