Finnfund, the Finnish development finance institution, has committed a $5 million mezzanine loan to Communication & Renewable Energy Infrastructure (CREI) in South Sudan. This initiative aims to bolster telecom infrastructure through hybrid power solutions, enhancing reliance on solar energy and reducing diesel generator dependency.
Impact on Mobile Connectivity
The project is expected to benefit over 2 million people by significantly improving mobile connectivity in South Sudan, a country known for its unreliable telecom services.
Valtter Louhivuori, head of Finnfund’s Nairobi office, emphasized the project’s importance under the Africa Connected program. Finnfund partners with EFSD+ Guarantees to expedite investments in digital infrastructure across Africa.
Economic and Social Advantages
Enhanced mobile connectivity is seen as a catalyst for economic development, improving access to vital services like finance, education, and healthcare, thereby elevating living standards and promoting inclusivity.
Collaborative Investment
The venture includes contributions from the Facility for Energy Inclusion (FEI) managed by Cygnum, and CREI’s asset management arm, financed through CREI’s Telecom Energy Service Company in South Sudan.
Sustainable Energy Solutions
CREI will provide “energy as a service” to a major telecom player in South Sudan, developing, constructing, operating, and maintaining essential energy infrastructure. This approach aims to ensure sustainable and reliable power supply for the telecom sector.
Through this strategic investment, Finnfund and its partners are paving the way for improved infrastructure and connectivity in South Sudan, supporting broader economic growth and development goals in the region.