South Sudan invests $20 million to solarize telecommunications towers

The Energy Inclusion Fund (EIF) and the Finnish Industrial Cooperation Fund (Finnfund) have awarded $20 million to asset manager Communication & Renewable Energy Infrastructure (CREI) to finance the solarization of telecommunications infrastructure in South Sudan.

Strategic Financing for Telecommunications

The Communications and Renewable Energy Infrastructure (CREI) financing includes a $15 million bridge loan from the African Development Bank (AfDB) Energy Inclusion Facility (EIF) and a $5 million mezzanine loan from the Finnish Industrial Cooperation Fund (Finnfund). This financing will enable CREI to develop, build and operate renewable energy facilities for a telecommunications entity in South Sudan. According to Valtter Louhivuori, head of Finnfund’s Nairobi office, “This investment is in line with our digitalization and climate action goals. We see that improving mobile connectivity drives economic growth.”

Installing hybrid energy solutions

Finnfund’s Africa Connected program will install at least 413 hybrid energy solutions in telecommunications facilities across South Sudan. These investments should increase solar energy production and reduce diesel consumption in network facilities. Finnfund is increasing its investments in Africa, for example in Kenya. The initiative should benefit at least 2 million South Sudanese in a country of 11 million people. Connectivity is currently very limited due to limited infrastructure and low mobile penetration.

Impact on the telecommunications sector

The implementation of these hybrid energy solutions represents a technological breakthrough for the telecommunications sector in South Sudan. By increasing solar energy production and reducing diesel consumption, the project reduces the operational costs of the telecommunications infrastructure. This transition to sustainable energy solutions also promotes economic stability by providing better mobile connectivity, enabling more efficient access to essential services and stimulating local and regional economic opportunities.

Market prospects

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 can serve as a model for other countries in the region, demonstrating the economic benefits of an integrated approach to energy and telecommunications.