DEG Invests $54M in Africa’s Clean Energy

February 25, 2025 • Estimated Reading Time: 2 minutes

Key Figures & Findings: The Facility for Energy Inclusion (FEI) has secured a $54 million investment from German development finance institution DEG to accelerate small-scale decentralized renewable energy (DRE) projects across Africa. FEI, managed by Cygnum Capital, has committed over $370 million in renewable energy financing across 23 countries. The funding will support independent power producers, mini-grids, and commercial & industrial (C&I) solar projects, reducing reliance on costly and polluting fossil fuels.

Statistics & Insights:
FEI’s existing investments have financed over 50 renewable projects, benefiting nearly 1.2 million people. This latest funding aims to increase clean energy capacity by at least 100 MW, providing power to underserved communities.

Future Implications:
If fully deployed by 2026, this investment could drive further private sector participation in Africa’s renewable energy sector. It may also help reduce diesel generator use, cutting carbon emissions and improving energy reliability across the continent.