Madagascar’s rural Electrification Gets a Major boost with EU and AFD Funding
Madagascar is making significant strides in addressing energy access in its rural areas, thanks to a €11.5 million funding package aimed at electrifying the Atsimo-Andrefana region in the island’s Great South. This initiative, supported by a €7.5 million grant from the European Union (EU) and the French Development Agency (AFD), is set to empower Anka, a leading operator of solar mini-grids, to expand its operations in this remote and vulnerable region. This collaboration marks a pivotal moment for Madagascar’s private sector, wich is playing a critical role in driving rural electrification.
A Vital Boost for Rural Electrification
The Atsimo-Andrefana region, where access to electricity is among the lowest in Madagascar, will soon benefit from 13 new solar mini-grids.These installations are expected to power approximately 40 villages, considerably improving the living conditions of thousands of families. The region’s inaccessibility and low purchasing power have traditionally deterred investors, but the EU and AFD’s commitment has enabled Anka to undertake these large-scale projects.
Dina Rajaobelina, Anka’s communications director, emphasizes the importance of this funding: “This financing is a strong signal that the development of the rural electrification sector is possible in Madagascar. It also shows the importance of listening to the private sector,already active on the ground,to define priorities and the use of these funds.”
Anka: Leading the Charge for Sustainable Energy
anka, a key player in Madagascar’s solar mini-grid sector, already provides solar energy to hundreds of beneficiaries in the Deep South. While its prices are twice as high as those of the state-owned utility Jirama, they remain among the most affordable on the market. The average cost of electricity sold by Anka is 1,800 ariary per kWh, which is significantly lower than choice solutions.
Though, Rajaobelina highlights the challenges: “The populations of the Deep South, notably vulnerable to climate change, are frequently enough the first to suffer from environmental impacts. They even risk becoming Madagascar’s first climate refugees. Thus, the continued support of donors remains essential to guarantee the sustainability of these projects.”
A Market Still in Development
Despite these advancements, Madagascar’s energy access remains a pressing issue, with two-thirds of the population still without electricity. The market is still in its infancy, and investments are struggling to keep pace with the needs of private operators, who face significant financial risks in rural areas.
To achieve the goal of universal access to electricity by 2030, estimated to require $7 billion by SEforALL, Madagascar must continue to strengthen its partnerships and encourage private sector involvement.
Key Takeaways
| Aspect | Details |
|————————–|—————————————————————————–|
| Funding | €11.5 million (€7.5 million from EU and AFD) |
| Region | Atsimo-Andrefana, Madagascar’s Great South |
| Operator | Anka, a leading solar mini-grid provider |
| Impact | 13 new solar mini-grids, electrifying 40 villages |
| Challenges | Low purchasing power, climate vulnerability, financial risks |
This initiative underscores the transformative potential of international collaboration and private sector engagement in addressing Madagascar’s energy challenges. As the country works towards its 2030 electrification goals, the continued support of organizations like the EU and AFD will be crucial in ensuring a sustainable and inclusive energy future.
Call to Action: Learn more about how solar mini-grids are revolutionizing energy access in rural areas and explore the EU’s development initiatives in Africa.