The MIGA-ISA Solar Facility aims to boost solar adoption by providing innovative financing solutions, with an initial focus on expanding solar energy projects across Sub-Saharan Africa.
The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, and the International Solar Alliance (ISA) have launched the MIGA-ISA Solar Facility. This multi-donor trust fund aims to accelerate the global adoption of solar energy by leveraging ISA’s technical expertise and MIGA’s financing capabilities. The facility will provide concessional financing tools, such as first-loss instruments and reinsurance, to improve project bankability and reduce the cost of MIGA guarantees. Initially, the focus will be on Sub-Saharan Africa, with plans to expand globally.
Administered by MIGA, the facility is designed to mobilize private capital for solar and distributed energy projects, providing risk mitigation instruments to support the growth of solar initiatives in ISA member countries. ISA has committed $2 million in seed funding, with a target of raising $10 million. The initiative is part of ISA’s Global Solar Facility (GSF), which aims to establish a $200 million fund for Africa.
MIGA and ISA will also collaborate on launching new solar and distributed energy projects in eligible developing countries. The partnership previously worked on a solar project in the Democratic Republic of Congo, where their efforts helped reduce operating costs by 20%, lowering tariffs for customers.
ISA, with 119 member countries, is committed to expanding the deployment of solar energy technologies and supporting member nations in their energy transitions. The GSF, starting with the Africa Facility, aims to provide cost-effective financing solutions to accelerate solar projects in underserved regions.