Benin Secures €30 Million Financing For 62 MW Solar Project Across Four Locations

AXIAN Group, Caisse des Dépôts et Consignations du Bénin (CDC Bénin), the International Finance Corporation (IFC) and Proparco have signed financing agreements worth €30 million for the development of the IPP50 solar power project in Benin. The project will involve the construction and operation of four solar photovoltaic power plants with a combined capacity of 62 MWp across Natitingou, Djougou, Parakou and Bohicon. It marks a significant step in expanding renewable energy generation and attracting private investment into Benin’s electricity sector.

The €30 million financing package will be jointly provided by IFC and Proparco, with IFC also mobilising additional resources from the Clean Technology Fund (CTF), an international fund supporting clean technology investments in developing countries. The total project cost is estimated at €45 million. The financing agreements are expected to support construction and long-term operation of the solar facilities.

Once operational, the four plants are expected to generate approximately 110 GWh of renewable electricity annually. The project is also expected to provide clean electricity to around 383,000 people and avoid approximately 62,000 tonnes of carbon dioxide emissions every year. According to the project estimates, the additional generation could increase Benin’s domestic electricity production by around 17% over the 2028–2035 period, helping reduce dependence on imported electricity.

IPP50 represents Benin’s first independent power producer (IPP) solar project and is expected to open new opportunities for private-sector participation in the country’s power generation market. The project is structured as a public-private partnership under concession agreements granted by the Government of Benin. These agreements provide a contractual framework for private investment and support the development of renewable energy infrastructure.

The electricity generated by the four plants will be sold to Société béninoise de production d’électricité (SBPE) under long-term power purchase agreements. The project will operate under 20-year concessions, with commercial operations scheduled to begin in the first quarter of 2028.

The development also supports Benin’s National Energy Compact, which targets electricity access for approximately 928,000 additional households by 2030. The country aims to achieve a national electrification rate of at least 70% and increase renewable energy’s share to 30% of its electricity generation mix.

Benjamin Memmi, CEO of AXIAN Group’s Energy division, said the financial close represents an important milestone for the company and Benin’s energy sector. He highlighted the importance of partnerships with international financing institutions and local investors in developing infrastructure that supports communities and economic growth. He also noted AXIAN’s partnership with Sika Capital, an investment vehicle jointly owned by CDC Bénin and Egnon Consulting.

IFC and Proparco said their participation would help mobilise long-term capital, strengthen electricity supply and support Benin’s energy security. Representatives from the financing institutions also highlighted the importance of concessional funding in reducing project risks and encouraging private investment in renewable energy.

CDC Bénin said its participation through Sika Capital reflects its commitment to mobilising long-term investment for strategic infrastructure and strengthening the country’s energy independence.

IPP50 also contributes to Mission 300, a joint initiative of the World Bank Group and the African Development Bank aimed at connecting 300 million people across Africa to electricity by 2030. The project is expected to establish a foundation for further renewable energy investment while supporting Benin’s efforts to expand electricity access and diversify its power generation sources.