The European Investment Bank (EIB) has agreed to invest $95 million (KSh10.2 billion) in geothermal power projects in East Africa. Some of the countries set benefit from the investment are; Kenya, Ethiopia, Eritrea, Djibouti, Madagascar, Rwanda, Malawi, Mauritius, Seychelles, Mayotte, Mozambique, Reunion, Somalia, South Sudan, Tanzania, and Uganda.
As part of its commitment to tackle global challenges, European Investment bank aims to reduce greenhouse gas emissions in East Africa through its investment in renewable energy. The bank also plans to increase sustainable and reliable energy supply in the region and boost energy efficiency in businesses, schools, and hospitals across Africa.
KenGen, one of the biggest players in the geothermal energy sector in East Africa is expected to reap big from the EIB investment. According to information on its website, the energy company earned KSh2.6 Billion from commercial innovation initiatives over the last nine years.
The European Investment Bank is owned by EU member states. It is described as one of the largest multilateral development banks in the world, with over €55.6 billion in loans to public and private entities around the globe.
In 2019, EIB announced it would invest €1.5 billion (KSh 192.7 billion) to support renewable energy and energy efficiency projects around the world.
Besides the recently approved $95 million investment in geothermal projects in East Africa, EIB approved $4.9 billion financing for renewable energy, clean transport, COVID-19 recovery, social housing and education throughout the world.
Also read: EIB Partners with Equity Bank to Boost Funding to Agribusiness
