The International Finance Corporation (IFC) and LMI Holdings have expanded their partnership to provide renewable energy infrastructure to businesses in Ghana's Tema and Dawa Industrial Zones. This new phase of the partnership involves the Solar for Industries (SFI) project, aimed at providing reliable and sustainable power to industrial customers. The project is expected to benefit over 100 businesses across various industries, including manufacturing, agro-processing, and logistics.
The Solar for Industries project is expected to create about 250 direct and 500 indirect jobs during construction, while sustaining 19 permanent operational jobs after construction. The project involves a US$39.5 million financing package to support the completion of the initial 100-megawatt phase of a 200-megawatt solar photovoltaic project located in the Dawa Industrial Zone. This financing represents the second tranche of a US$100 million facility.
The IFC's investment in the project complements LMI Holdings' integrated infrastructure across the Tema and Dawa Industrial Zones, including electricity, water, logistics, and digital services. The project aligns with Ghana's National Energy Transition Framework, which promotes increased use of renewable energy while balancing energy security with socio-economic development needs.
The financing package combines IFC's own capital, support from the International Development Association's Private Sector Window, and directly mobilised private capital. This combination of financing sources is expected to increase the capital available to complete the solar facility while improving its affordability. The project will support Ghana's efforts to expand manufacturing and increase local value addition by providing reliable and affordable renewable energy to industrial customers.
The solar facility will enable businesses to reduce emissions from their manufacturing value chains, improve operational efficiency, and expand their activities. The investment builds on an earlier partnership between IFC and LMI Holdings that supported the development of a 16.82-megawatt rooftop solar facility at the Tema Industrial Zone. This earlier partnership also supported an 11,000-cubic-metre-per-day water treatment plant at the Dawa Industrial Zone.
The rooftop solar facility at the Tema Industrial Zone was described as the largest operating installation of its kind in Africa. This demonstrates the partnership's focus on renewable energy and sustainable industrial infrastructure. The IFC and LMI Holdings' continued collaboration aims to promote sustainable development and economic growth in Ghana.
The partnership between IFC and LMI Holdings is expected to have a positive impact on Ghana's economy and environment. With the completion of the solar facility, businesses in the Tema and Dawa Industrial Zones will have access to reliable and affordable renewable energy, enabling them to increase their productivity and competitiveness.
Key points
- The IFC and LMI Holdings partnership will provide renewable energy infrastructure to over 100 businesses in Ghana's Tema and Dawa Industrial Zones.
- The project is expected to create about 250 direct and 500 indirect jobs during construction.
- The investment aligns with Ghana's National Energy Transition Framework, promoting increased use of renewable energy.
