Challenge
As one of the world’s least developed countries, Burundi faces severe electricity shortages that impact the quality of life and the potential for economic growth. Only about 10 percent of the population has reliable access to power and the country has struggled to attract the investment needed for large infrastructure projects.
Solution and Impact
DFC is providing $3.1 million in technical assistance to help Weza Power, a utility startup, accelerate its work expanding grid access across the country by developing a series of mini-grids to reach remote populations. Weza has received initial financing from a combination of private, public, and donor support and is working with the Government of Burundi to negotiate a public private partnership agreement for power purchases.
DFC’s technical assistance will support the launch of a pilot project aimed at connecting more than 40,000 new customers including individual homes and businesses to the grid, and eventually unlocking additional financing required for further expansion. As part of this project, Weza will conduct a rural demand study to assess commercial electricity demand and identify specific opportunities to stimulate economic growth through expanded power access. It will also work to formalize the process for introducing rural mini-grids around the country, by developing standard contracts for rural mini-grids and embedded distributable renewable energy and developing recommendations on regulatory improvements to incentivize these investments.