INTELLIGENT BRANDS // Green Technology
DFC and Shell Foundation partner to accelerate access to renewable energy
US-based Development Finance
Corporation ( DFC ) and Shell
Foundation have released details about their collaboration , which aims to provide affordable renewable energy in Africa and Asia . According to the two entities , the project will assist millions of people living in low-income areas by 2025 .
Dev Jagadesan , Acting CEO , DFC , explained how the collaboration would work and said that 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 ,” he said .
Jagadesan added that DFC is excited to work hand-in-hand with Shell Foundation to deliver commercial financing and this project undertaking reflects a longterm and sustainable development plan that will prioritise 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 ,” he said .
Recently , DFC signed up a memorandum of understanding ( MoU ), which will help them in the mission to assist in developing social enterprises . It will deliver necessary renewable energy services to families living on at least US $ 2 and US $ 10 daily in lowincome areas . The 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 US $ 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 US $ 100 million during the first stages of debt and equity to aid the growth of these businesses . Statistics show 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 . The partnership is hoping to address the issue of lack of investment into the smaller and medium businesses with the main priority revolving around innovative companies that women own . DFC and Shell Foundation are hoping the partnership 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 . p
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