In recent days, the United States International Development Finance Corporation and Shell Foundation released details about their collaboration. The primary goal behind this collaboration includes providing affordable renewable energy in Africa and Asia. This project will assist millions of people living in low-income areas by 2025. During the announcement, Dev Jagadesan, acting CEO of DFC, explained how this collaboration would work. It combines the financing tool from his company and Shell Foundation portfolio and experience. The two teams will support companies and connect with people living in low-income areas to improve their lives.
Dev went ahead to express his excitement as they work hand in hand with Shell Foundation to deliver commercial financing. This project reflects a long-term and sustainable development plan that will prioritize women to help them empower themselves. It is also an easy way of supporting economic growth in the countries as they respond to the Covid-19 pandemic.
Recently, the organization signed up a memorandum of understanding, which will help them in the mission to assist in developing social enterprises. How? It will deliver necessary renewable energy services to families living on at least $2 and $10 daily in low-income areas. This help will enhance income, health, education, and women’s economic empowerment in society.
From the MOU, it is clear that the Shell Foundation intends to offer over $45 million grand funding by 2025. This vast amount aims to help countries invest in the pipeline of fast-growing and impact various businesses. The companies will work on delivering renewable energy to other companies, households, and farmers.
DFC hopes to approve a massive amount of $100 million during the first stages of debt and equity to aid the growth of these businesses. Statics shows that over 800 million people on the planet currently have no access to electricity. Also, over 2.8 billion people worldwide are struggling with unreliable power sources. The lack of power results in many struggles as countries try to recover from the Covid-19 pandemic, and the economic growth rate is low.
This partnership is hoping to address the issue of lack of investment into the smaller and medium businesses. The main priority will revolve around innovative companies that women own. DFC and Shell foundation partnerships can give opportunities to many, especially in the investment world. It is a way to provide a face to DFC thanks to the experience and portfolio of the Shell Foundation. Sam Parker, the DFC CEO, went ahead to highlight the opportunities that this project is trying to offer to society. This mission is also the best move to get to their 2020 development strategy plan, the Roadmap for Impact.https://cityofhype.com/