Financing of rural electrification and agro-food projects

The European Investment Bank (EIB), announced yesterday the disbursement of 30 million euros to support development projects initiated by the private sector. Ambroise Fayolle, vice-president of this financial institution currently visiting Madagascar announced it yesterday during his meeting with Andry Rajoelina in Iavoloha.

Two development projects will benefit from this funding. The first project, called “WeLight”, receives funding of up to 10 million euros and concerns the development and construction of mini-solar parks in 120 villages on the Big Island, currently not connected to the Jirama network. These “mini-grids” will allow the inhabitants of the most remote villages to access clean and affordable energy. The WeLight mini-grid consists of a small solar power plant connected to a distribution network. These mini-grids should provide access to electricity to 45,000 households and businesses which will be equipped with meters for invoicing. A step for rural electrification because according to the World Bank, the big island is among the least electrified countries on the African continent with a rate estimated at only 33%.

The second project, relating to the agro-food industry, with a financing agreement of up to 20 million euros, in partnership with the company Sahanala, is divided into two parts. The first concerns Maintirano and consists of supporting the mechanization of agriculture in parallel with traditional practices, as well as the establishment of an industrial complex for the processing of corn, rice, edible oil and animal feed. intended for the domestic market.

The second component concerns Vohémar and aims to guarantee responsible fishing and the installation of a modern deep-freezing plant equipped with refrigeration equipment, and cold units for the production of ice cream in the various collection centres. Small-scale fishermen will thus be able to access the domestic market, but also target the international market.

Andry Rajoelina took advantage of the passage of this number two of the EIB to review the projects financed by the EIB in Madagascar with particular emphasis on the rehabilitation of the portion of the RN13 linking Ambovombe and Fort-Dauphin, as well as that of the RN6 connecting Ambanja and Diego. The rehabilitation of the RN13 is indeed part of the President’s presidential promises during his campaign in 2018. Projects in terms of energy were also discussed, in particular the progress of the construction projects for the power plants in Volobe and Sahofika, which are supported by the European Union through the EIB.

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