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Benin: Proparco and IFC support AXIAN and Sika in financing 62 MWp of new solar capacity
Proparco and IFC are supporting AXIAN Energy Green and Sika Capital, an investment vehicle jointly owned by Benin's Caisse des Dépôts et Consignations (CDC Benin) and Egnon Consulting, in financing four solar photovoltaic power plants with a combined capacity of 62 MWp in Benin. As the country's first project developed by an independent power producer (IPP), it will help diversify Benin's energy mix, increase local renewable energy generation and pave the way for further private investment in the sector.
Located across four sites in Benin, the solar power plants will represent approximately 10% of the country's current installed electricity generation capacity. Developed by AXIAN Energy Green and Sika Capital, the project will benefit from financing of approximately €14 million each from Proparco and IFC.
This transaction marks Proparco's first financing of an energy project in Benin and a new milestone in its partnership with the AXIAN Group.
Leveraging French expertise to develop solar energy in Benin
The project draws on the expertise of Sagemcom, a French company active in Africa in the construction of grid-connected solar power plants, the deployment of mini-grids and the extension of electricity networks. Responsible for the engineering, procurement and construction (EPC) of the four plants, Sagemcom will also provide maintenance services during their first two years of operation. Its involvement will therefore cover both the construction of the facilities and support during their initial years of operation.
This partnership illustrates the contribution of French companies to the development of renewable energy infrastructure that meets the continent's energy needs, alongside African investors and development finance institutions.
Strengthening Benin's energy independence
The project will help reduce reliance on fossil fuels and strengthen the country's energy sovereignty and independence. As Benin's first IPP project, it could pave the way for future projects by demonstrating the viability of private investment in renewable energy infrastructure. Proparco and IFC's involvement also addresses the limited appetite among commercial banks for providing long-term financing for pioneering projects of this kind.
This transaction forms part of the broader AFD Group approach in Benin, complementing the French Development Agency's (AFD) activities in electricity distribution networks, solar generation capacity and public policy dialogue with the Beninese authorities.
Delivering significant climate and electricity access impacts
The four power plants are expected to avoid approximately 62,000 ton of CO₂ equivalent emissions per year, help improve access to electricity for nearly 50,000 households and support the creation or maintenance of approximately 5,845 indirect jobs. The project will also provide renewable electricity at a competitive cost.
Sadio Dicko, Proparco's Regional Director for West Africa, said: "By supporting Benin's first independent power producer project, we are helping to increase local generation of competitive renewable energy while paving the way for further private investment in the sector. Alongside IFC, AXIAN Energy Green and Sika Capital, this transaction reflects our commitment to strengthening the country's energy sovereignty and illustrates the complementary nature of AFD Group's activities."
The project will contribute to Sustainable Development Goals (SDGs) 7 ("Affordable and Clean Energy"), 8 ("Decent Work and Economic Growth") and 13 ("Climate Action").