IFC supports Ghana’s $1b solar project

The World Bank’s International Finance Corp. (IFC) is backing a $1 billion solar project by Ghanaian conglomerate LMI Holdings, which aims to increase the country’s solar power generation sevenfold by 2030.

The IFC has provided a $130 million loan to support the project, which plans to add 1,000 megawatts of solar installations over the next six years.

As of the end of 2023, Ghana had 141 megawatts of installed solar capacity, according to the Energy Commission. The first phase of the project has already established 1 million square feet of rooftop solar panels, generating 16.8 megawatts of power.

“This is just the first phase and the biggest single-roof solar project in Africa,” said Kojo Aduhene, CEO of LMI Group.

He also noted that the company is collaborating with the IFC and other private investors to secure over $1 billion in funding for the project.

Ghana currently has an installed capacity of 5,639 megawatts but struggles to meet peak demand of 3,618 megawatts due to financial constraints.

The project is part of a larger effort to provide affordable electricity and move towards energy independence in the West African nation.

The next phase of the project will develop an additional 150 megawatts in 2024, with a final phase adding 833.2 megawatts, said Aduhene.

The initiative represents a joint commitment to a sustainable and greener future in Ghana, according to Cemile Hacibeyoglu, the IFC’s senior country officer for the nation.

LMI Holdings has 33 years of experience in Ghana and operates in sectors including construction, real estate, and utilities.