The International Finance Corporation (IFC), a member of the World Bank Group, and LMI Holdings have expanded their partnership to provide reliable and sustainable power to industrial customers in Ghana. The Solar for Industries (SFI) project will benefit over 100 businesses across manufacturing, agro-processing, logistics, and other industries operating within the Tema and Dawa Industrial Zones. This project aims to support Ghana's efforts to expand manufacturing and increase local value addition.
The project involves a US$39.5 million financing package to support the completion of the initial 100 MW phase of a 200 MW solar photovoltaic project located in the Dawa Industrial Zone. This financing represents the second tranche of a US$100 million facility, following a first tranche of US$21 million committed by IFC in FY24 and disbursed in FY25. The investment will help businesses decarbonize their manufacturing value chains, operate more efficiently, and invest with greater confidence.
Reliable and affordable energy is essential to Ghana's industrial growth and competitiveness. The solar facility will provide more reliable and sustainable power to industrial customers, helping to reduce their reliance on fossil fuels and lower their carbon footprint. This project aligns with Ghana's National Energy Transition Framework, which promotes increased renewable energy use while balancing the country's energy security and socio-economic development needs.
The IFC-LMI partnership complements LMI's integrated infrastructure across the Tema and Dawa Industrial Zones, including electricity, water, logistics, and digital services. This investment builds on an earlier IFC-LMI partnership that supported the development of a 16.82 MW rooftop solar facility at the Tema Industrial Zone and a 11,000-cubic-metre-per-day water treatment plant at the Dawa Industrial Zone. The rooftop solar facility is the largest operating installation of its kind in Africa.
The financing package brings together IFC's own capital, support from the International Development Association's Private Sector Window, and directly mobilized private capital. Combining these resources increases the financing available to complete the solar facility while helping to improve its affordability. This project is expected to create approximately 250 direct and an estimated 500 indirect jobs during construction and sustain 19 permanent operational jobs post-construction.
The investment is part of a broader effort to mobilize capital for sustainable infrastructure in Ghana. The IFC has been working with the Ghanaian government and private sector to support the development of sustainable infrastructure, including renewable energy, water, and logistics. This project demonstrates the IFC's commitment to supporting Ghana's economic development and reducing its carbon footprint.
The partnership between IFC and LMI Holdings is a significant step towards supporting Ghana's industrial growth and reducing its reliance on fossil fuels. With the completion of the solar facility, over 100 businesses will benefit from reliable and sustainable power, helping to drive economic growth and reduce carbon emissions. The project is expected to have a positive impact on Ghana's economy and environment, and demonstrates the potential for public-private partnerships to drive sustainable development.
Key points
- The IFC and LMI Holdings have partnered to provide reliable and sustainable power to industrial customers in Ghana's Tema and Dawa Industrial Zones.
- The project involves a US$39.5 million financing package to support the completion of a 200 MW solar photovoltaic project.
- The investment is expected to create approximately 250 direct and 500 indirect jobs during construction and sustain 19 permanent operational jobs post-construction.
