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TIB, SNV Netherlands rural solar deal

TIB, SNV Netherlands rural solar deal

Feb 24, 2014

24 February 2014 ~ TIB Development Bank and SNV Netherlands Development Organisation have signed an agreement for financing the Pico-Solar PV lighting applications in the Lake Zone, according to a report published in Tanzania Daily News. “As a whole, the RBF Fund for Pico-Solar will stimulate an additional Euro 3 million (about R46 million) in private sector investment to the Lake Zone,” said Mr Peter Noni, the TIB Development Bank’s Managing Director in Dar es Salaam this weekend.

Noni added: “The project will save consumers more than Euro 22 million (R330 million) in domestic kerosene expenditure and place clean lighting and electrification services within reach for more than 175,000 off-grid rural people.”

TIB Development Bank has been designated to host the RBF incentive fund valued at Euro 1 million. The signing of the deal is meant to open the Results Based Financing (RBF) Fund which is financed through the Energising Development (EnDev) initiative as managed by GtZ and funded by the Department for International Development (DFID).

According to Noni, the RBF Fund is a temporary financial product in mainstream banking that serves to assist the Private Sector in developing the market for Pico-Solar products (small solar home kits, lanterns, phone chargers) in isolated rural areas of the Lake Zone.

The RBF Fund for Pico- Solar in the Lake Zone will be open to the private sector from May 2014 until August of 2017 and will focus on expanding the reach of quality lighting products into rural markets throughout the six Lake Zone regions including Geita, Kagera, Mara, Mwanza, Shinyanga and Simiyu.

It will support suppliers and retailers to mutually develop the distribution chain for affordable and reliable Pico-Solar products to the ultimate benefit of over 100 000 rural Lake Zone households. This will be achieved by providing post-sales incentives payable to the private sector.

The RBF Fund for Tanzania will be one of only seven such private sector funds in the energy sector scheduled to begin operations throughout the world in 2014.

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