The Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank, has pledged a €6 million concessional finance package to support the development of the 18 MW Dédougou Solar Power Plant in Burkina Faso. This investment represents a key step in expanding the country’s renewable energy capacity and addressing its energy access challenges.
The funding package includes a €2.5 million senior concessional loan and a €3.5 million reimbursable grant. Additional financing is being provided through a mix of subordinated and senior loans from the Dutch Entrepreneurial Development Bank (FMO). The agreement was formalized at a signing ceremony in Paris on July 18, with representatives from the African Development Bank, FMO, the project developer Qair, and legal advisors A&O Shearman and Trinity present.
The Dédougou Solar Project is part of the African Development Bank’s Desert-to-Power initiative, which aims to transform the Sahel region into the world’s largest solar energy hub. The project is a strategic component of Burkina Faso’s national roadmap for Desert-to-Power and is one of the country’s early independent power producer (IPP) initiatives. It will operate under a 25-year Power Purchase Agreement with the national utility, SONABEL.
Once operational, the solar plant is expected to diversify Burkina Faso’s energy mix, lower electricity costs, and improve access to affordable, reliable energy. It will support national economic growth and local development, while also incorporating a strong Environmental and Social Management System to minimize environmental and social impacts. Backed by SEFA and FMO, the project highlights the role of private-sector investment in accelerating the region’s transition to clean energy and improving quality of life across Burkina Faso.
