Niger, Islamic Bank Ink $163 Million Solar Power Deal to Boost Energy Access
Niger has signed a landmark $163 million solar power financing agreement with an Islamic development finance institution, marking a major step in the country’s efforts to expand renewable energy capacity and improve electricity access nationwide.
The agreement is aimed at accelerating Niger’s transition to clean energy by supporting the development of large-scale solar power projects, strengthening energy infrastructure, and expanding power supply to underserved urban and rural communities. According to officials familiar with the deal, the funding will help Niger increase national electricity access, which currently remains among the lowest in West Africa. The initiative targets a rise in electricity coverage from about 22.5 percent to 30 percent by 2026, with plans to develop up to 240 megawatts (MW) of solar power capacity by 2030 A key milestone under the project is the expected delivery of at least 50 MW of new solar generation capacity by December 2026, alongside investments in grid expansion, solar mini-grids, and rural electrification. The financing also aligns with Niger’s broader energy reform and governance programme, which includes improving regulatory frameworks, encouraging private-sector participation, and enhancing transparency in the power sector. The goal is to create a more sustainable, competitive, and investor-friendly energy market. Analysts say the deal highlights the growing role of Islamic finance in Africa’s renewable energy transition, as Sharia-compliant funding becomes an increasingly important source of capital for infrastructure development across the continent. Beyond expanding electricity access, the project is expected to stimulate economic growth, support industrial and manufacturing activities, reduce reliance on imported power, and create new jobs in the clean energy sector. It also aims to improve living standards by providing more reliable and affordable electricity to households, schools, healthcare facilities, and businesses.
