Affordable energy for local communities in Nigeria thanks to government funding
Watch the video to find out about the story of Habiba Ali, a small businesswoman with big goals. It all starts with the company Sosai Renewable Energy set up by Habiba Ali. Her company Sosai Renewable Energy installs systems for using solar energy as a renewable energy source on a small scale in small communities.
Doing business in developing countries
Thanks to her partnership with Dutch company Independent Energy and with the help of the Dutch Good Growth Fund (DGGF), she can now do so on a large scale. This has enabled Habiba to achieve two of the goals she had set for herself: creating more local employment and reducing poverty in the region.
Energy for the taking but limited availability
Two thirds of Nigeria's population of 190 million have limited access to energy. To meet their energy needs, large areas of forest are being cut down throughout the region. With the sun as a constant factor in Nigeria, it should be a huge source of sustainable energy. However, small-scale solar energy systems are expensive to buy and Nigerian companies often lack both the right knowledge and the proper equipment.
From the Netherlands to Nigeria
Dutch company Independent Energy has off-grid solar systems for generating solar energy. This generated energy is not supplied to the grid but is used locally. In addition, the company offers its services in the form of training programmes for local staff and management. It sees enormous potential in the Nigerian market.
There had been previous contact between Independent Energy and Sosai for setting up a partnership. But being able to pay for the systems in one go was a problem for Sosai’s customers. They were unable to obtain affordable financing from their own banks, which meant that Independent Energy would have had to pre-finance the purchase, and that was impossible.
Expansion in Nigeria partly thanks to DGGF
With the help of export credit insurance via DGGF, Independent Energy and Sosai can further expand their cooperation. With this insurance, payment for purchasing the systems is guaranteed.
The Dutch government encourages businesses to share their knowledge and skills with developing countries. DGGF enables Dutch entrepreneurs to carry out business activities in developing countries and emerging markets by helping them with funding and insurance against credit risks.
Nigeria is one of the countries eligible for support through DGGF for Dutch entrepreneurs.