Ignite Power, a leading renewable energy company, has announced a $15 million senior debt investment from the Afrigreen Debt Impact Fund to support the growth of its subsidiary, Westa Solar. This funding is aimed at expanding commercial and industrial (C&I) solar energy solutions across West Africa, with Nigeria as the initial focus.
The financing agreement includes an upfront disbursement of $4 million, with the remaining $11 million contingent on the successful implementation of early-stage projects. This phased approach reflects Afrigreen’s commitment to supporting scalable, impactful renewable energy projects in Africa.
Westa Solar specializes in providing businesses with solar energy through Power Purchase Agreements (PPAs) and leasing options. These models eliminate the need for significant upfront capital, making solar energy accessible to a wider range of businesses.
For many businesses in Nigeria, where grid electricity is unreliable and diesel generator costs are soaring, solar energy presents an attractive alternative. Solar systems not only reduce operational costs but also provide greater reliability and independence from fluctuating diesel prices.
“Solar energy offers a transformative solution for businesses facing high energy costs and operational inefficiencies due to unreliable power,” said Yariv Cohen, CEO of Ignite Power. “This investment from Afrigreen enables us to expand our reach and help businesses transition to clean, reliable energy solutions without upfront financial barriers.”
One of the key components of this deal is an innovative hedging structure developed in collaboration with the International Finance Corporation (IFC). The mechanism allows Ignite Power to receive funding in U.S. dollars while repaying the equivalent in local currency at the exchange rate prevailing at the time of repayment.
This arrangement mitigates the risks associated with currency fluctuations, which are a significant concern in markets like Nigeria, where the local currency, the Naira, has experienced ongoing depreciation. By stabilizing financial terms, this structure provides businesses with greater predictability and confidence in adopting solar energy solutions.
“In markets with volatile currencies, financing mechanisms that address exchange rate risks are essential,” noted Alexandre Gilles, Managing Director of Afrigreen. “This structure not only supports Ignite Power’s growth but also demonstrates the importance of innovative financial tools in unlocking renewable energy opportunities in emerging economies.”
The potential for solar energy in the C&I sector across West Africa is vast. With over 500 MW of untapped capacity estimated in the region, businesses are increasingly turning to solar solutions to reduce costs and improve sustainability.
Westa Solar has already deployed 3 MW of solar energy in the region, and this latest investment aims to significantly scale operations. The company plans to target a range of industries, including manufacturing, logistics, and retail, offering tailored solutions to meet their energy needs.
“Westa Solar is uniquely positioned to address the growing demand for clean energy in West Africa,” said Vincenzo Capogna, Managing Director of Westa Solar. “Our focus on cost-effective, reliable solutions ensures that businesses can transition to solar without compromising their operational efficiency.”
Afrigreen’s investment in Ignite Power is part of a broader strategy to accelerate the adoption of renewable energy across Africa. The fund focuses on impactful projects that address energy access and sustainability challenges in underserved markets.
“We are proud to partner with Ignite Power, a company with a strong track record and a clear vision for the future of energy in West Africa,” Gilles added. “This investment not only supports a leading player in the solar market but also aligns with Afrigreen’s mission to create lasting environmental and economic benefits.”
The expansion of solar energy solutions in West Africa is expected to deliver significant economic and environmental benefits. By reducing reliance on diesel generators, solar systems help businesses lower costs and improve their carbon footprint.
This transition also contributes to broader energy security and sustainability goals in the region, supporting industrial growth and fostering economic resilience. With Nigeria leading the way, Ignite Power’s initiatives are likely to have a ripple effect across neighboring markets.
As Ignite Power and Afrigreen collaborate to scale solar energy across West Africa, the investment marks a pivotal moment in the region’s energy transition. Combining financial innovation with cutting-edge technology, this partnership aims to redefine how businesses access and utilize energy in one of the world’s fastest-growing markets.