Shell and FMO to finance impact projects in Africa and India
The Shell Foundation and the Dutch development bank FMO have committed to work together to increase funds for impact finance in the energy sector in Sub-Saharan Africa and India.
The parties have signed a memorandum of understanding, agreeing to co-fund and co-create project opportunities in the energy access and clean energy sectors in the two regions, including investment in financial institutions with specific goals to increase access to finance, reduce inequality and promote green financing and agribusiness.
They will use tools such as capital solutions (debt and/or equity), grants, non-financial support, social investment, leadership and joint evaluation and advisory of funding opportunities.
FMO has been working together with the charity on projects over the last 10 year, unlocking over €70mn ($81M) worth of funding into high-impact enterprises providing essential services in Africa and Asia.
According to an FMO spokesperson, the MoU “further cements the relationship and formalized it”. The parties plan to co-invest in at least two projects a year, but have not specified the value of the investments.
Photo courtesy of Ken Teegardin.