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Green energy : New solutions for businesses

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Green energy : New solutions for businesses

Possibility of concessional loans for companies

As part of implementing the « FIER » project funded by the United Nations Joint Fund for Sustainable Development Goals, businesses can access concessional loans, guarantees, and additional subsidies for financing renewable and sustainable energy projects in Madagascar.

The United Nations Development Programme (UNDP) and the United Nations Capital Development Fund (UNCDF) have just launched the call for expressions of interest. According to the project’s promoters, the goal is to develop a financing line for sustainable energy projects and energy efficiency in Madagascar.

Despite its strong potential in renewable energies, the Big Island, like most developing countries, needs a better-developed energy sector vulnerable to exogenous shocks and climate change. Madagascar has a low electrification rate of 26%, with low access to electricity (35.1 %) according to the latest estimates from the World Bank, disproportionately distributed between urban areas (60 %) and rural areas (15.1 %) in 2022.

Furthermore, over 92 % of Malagasy households depend on firewood, charcoal, and other biomass for cooking energy. In 2018, only 0.6 % of Malagasy households used clean fuels, and only 0.3 % used improved cooking stoves. These loans will be granted by the UNCDF (United Nations Capital Development Fund).

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