Benin gets financing for IPP50 solar project

Benin is investing €45mn in four solar power plants, backed by international financiers, to increase domestic electricity production, reduce energy imports, improve energy security and expand clean energy access

It follows the signing of €30mn in financing agreements for the IPP50 solar project from a group of leading financiers that include AXIAN, a pan-African group, Caisse des Dépôts et Consignations du Bénin, International Finance Corporation (IFC), a member of the World Bank Group, and Proparco, the private financing arm of Agence Française de Développement (AFD).

The agreements aim to increase domestic power generation, strengthen energy security and expand access to renewable energy across Benin.

The country's first independent power producer (IPP) solar project is expected to supply clean electricity to 383,000 people, reduce reliance on imported power and avoid around 62,000 tonnes of CO2 emissions annually.

Benjamin Memmi, CEO of AXIAN Group's energy division, said: IPP50's financial close marks a milestone for AXIAN and the development of Benin's energy sector.

“This project, comprising four solar power plants with a combined capacity of 63 MW, reflects the ambition of the Beninese authorities to accelerate the country's energy transition, particularly through strong partnerships with the private sector,” Memmi said.

“With IPP50, we are once again demonstrating our ability to bring together international partners and financing to turn a vision into tangible infrastructure that serves communities and supports economic development.”

Memmi also cited AXIAN’s partnership with Sika Capital, an investment vehicle jointly owned by Caisse des Dépôts et Consignations du Bénin and Egnon Consulting, which “reflects our conviction that Africa's energy transition depends on strong local roots and long-term commitments.”

Landmark solar financing

A first for solar power financing in BeninThe IPP50 project, with a total project cost of €45mn, represents a significant step towards opening up Benin's power generation sector to private investment.

The project is also part of a public-private partnership structured around concession agreements granted by the Benin government, which is supporting its development and helping to establish a secure contractual framework.

It also contributes to Benin's National Energy Compact, which aims to provide approximately 928,000 additional households with access to electricity by 2030, raise the national electrification rate to at least 70%, and increase the share of renewables to 30% of the power generation mix.

The €30mn financing package is provided jointly by Proparco and IFC, which is mobilising resources from the Clean Technology Fund (CTF), an international fund dedicated to financing clean technologies in developing countries.

It will support the construction and operation of the four solar photovoltaic power plants with a combined capacity of 62 MWp in Natitingou, Djougou, Parakou and Bohicon.

Once operational, the plants are expected to generate approximately 110 GWh of renewable electricity annually, equivalent to an increase of around 17% in domestic power generation over the 2028–2035 period.

Nathalie Kouassi Akon, World Bank Group regional director, said financing the IPP50 project demonstrates the role of the private sector in accelerating Benin's energy transition.

“By supporting construction of the solar power plants alongside Proparco, IFC is helping mobilise long-term capital to expand the supply of clean electricity, strengthen the country's energy security and pave the way for further private investment in renewable energy.”

The new investment is also seen to be helping to de-risk Benin's first private-sector, enabling private investors to commit and construction to begin.

“Alongside the Beninese authorities, AXIAN Group, Sika Capital, French contractor Sagemcom and IFC, this transaction reflects our commitment to Benin's energy sovereignty, in full complementarity with the work of AFD Group in the country,” said Sadio Dicko, Proparco's regional director for West Africa.

Electricity generated by the plants will be sold to Société béninoise de production d'électricité (SBPE) under long-term power purchase agreements (PPAs).With 20-year concessions and commercial operations scheduled to begin in the first quarter of 2028, IPP50 is expected to make a lasting contribution to Benin's electricity supply.