South Sudan secures USD 20 million in funding for the solarization of its telecoms towers, a project aimed at improving connectivity and reducing operational costs in the telecommunications sector.
Strategic Funding for Telecommunications
The Energy Inclusion Facility (EIF) and the Finnish Industrial Cooperation Fund (Finnfund) have granted $20 million to the asset manager Communication & Renewable Energy Infrastructure (CREI) to finance the solarization of telecommunications infrastructure in South Sudan.
The funding comprises a $15 million bridge loan from the African Development Bank’s (AfDB) Energy Inclusion Facility (EIF) and a $5 million mezzanine loan from the Finnish Industrial Cooperation Fund (Finnfund). This funding will enable CREI to develop, construct, and operate renewable energy facilities for a telecommunications operator in South Sudan.
According to Valtter Louhivuori, head of Finnfund’s Nairobi office, “This investment aligns with our goals in digitalization and climate action. We see that improving mobile connectivity fosters economic growth.”
Installation of Hybrid Energy Solutions
Finnfund’s Africa Connected program will facilitate the installation of at least 413 hybrid energy solutions at telecoms sites across South Sudan. These investments are expected to increase solar energy production and reduce diesel consumption at network sites.
Finnfund is increasing its investments in Africa, including in Kenya. The initiative is expected to benefit at least 2 million South Sudanese, in a country with a population of 11 million. Connectivity is currently very limited due to restricted infrastructure and low mobile phone penetration.
Impact on the Telecommunications Sector
The implementation of these hybrid energy solutions represents a technological advancement for the telecommunications sector in South Sudan. By increasing solar energy production and reducing diesel use, the project lowers the operational costs of telecoms infrastructure.
This transition to sustainable energy solutions also promotes economic stability by providing better mobile connectivity, enabling more efficient access to basic services, and stimulating local and regional economic opportunities.
Market Outlook
With this funding, South Sudan is positioning itself as a pioneer in adopting renewable energy solutions for its critical infrastructure. The success of this project could serve as a model for other countries in the region, demonstrating the economic benefits of an integrated approach to energy and telecommunications.