The German development finance institution Deutsche Investitions-und Entwicklungsgesellschaft (DEG) recently lent USD 750,000 to Husk Power Systems, an India-based supplier of small-scale electricity generation and distribution networks, to construct eight solar microgrids in Nigeria and to expand the company’s existing operations in India. Husk expects the new microgrids in Nigeria to “connect more than 500 residential and commercial customers, reduce the number of diesel generators in use by 400, while creating about 40 new direct local jobs.” DEG sourced the 5-year loan to Husk from the Up-scaling program, which is intended to increase access to finance for early-stage small and medium-sized enterprises (SMEs).
Founded in 2008, Husk has raised USD 30 million over four rounds of funding since 2010. The firm’s investors include Shell Ventures, the UK-based venture capital arm of energy firm Shell; the Swedish government’s Swedfund International; and France-based venture capital fund Engie Rassembleurs d’Energies. Husk has 130 online sites serving 200,000 people across India, Nigeria and Tanzania.
Founded and headquartered in the city of Cologne, DEG is a member of the KfW Group, which is named for another of its members, KfW, formerly known as Kreditanstalt fur Wiederaufbau. Founded in 1948 and owned by the federal and local governments of Germany, KfW deployed funds totaling EUR 107 billion (USD 122 billion) during 2021. During the same year, DEG invested EUR 6.4 billion (USD 6.9 billion) in international projects.
By Vaughn Rajah, Research Associate
Sources and Additional Resources
Husk press release
https://huskpowersystems.com/husk-power-secures-750000-in-debt-from-germanys-deg-to-expand-solar-microgrid-business-in-nigeria-and-india/
DEG Up-scaling program description
https://www.deginvest.de/Unsere-L%C3%B6sungen/Up-Scaling/index-2.html
DEG 2021 annual report
https://www.deginvest.de/DEG-Documents-in-English/Download-Center/DEG_JAB_2021_EN.pdf
KfW homepage
https://www.kfw.de
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