By Faridat Salifu
Nithio, a climate fintech company, recently secured a substantial $10million in funding for its Facility for Adaptation, Inclusion and Resilience (FAIR).
This funding has been provided by the Netherlands Development Finance Corporation (FMO) through its Energy Access Fund (AEF).
The platform, which supports the financing of solar energy for productive use, will use this investment to extend its financing to distributors of solar home systems and appliances for productive use in Africa.
The funding from FMO supports Nithio’s efforts to provide clean energy to households and small and medium-sized enterprises (SMEs) in Africa.
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The FAIR mechanism aims to enable local borrowers to access renewable energy, contributing to the mandate of AEF.
Additionally, the loans provided will be denominated in local currency, further emphasizing the commitment to supporting local communities.
Nithio’s FAIR mechanism has already made a significant impact, with investments benefiting over 400,200 people with access to energy and 12,100 people with access to products for businesses.
The company has also garnered support from other impact investors, including the American Development Finance Corporation (DFC), the Investment Fund for Developing Countries (IFU), and the Shell Foundation.
Overall, the $10 million investment from FMO illustrates a strong commitment to supporting climate-friendly companies, and further enhancing Nithio’s efforts to promote energy access and sustainability in Africa.
