South Sudan is receiving 20 million USD in funding aimed at solarizing telecommunications towers, a project designed to improve connectivity while reducing energy costs. The financing comes from the African Development Bank’s (AfDB) Energy Inclusion Facility (EIF) and the Finnish Industrial Cooperation Fund (Finnfund), directed to Communication & Renewable Energy Infrastructure (CREI).
Financing structure and project overview
The solarization project for telecom towers in South Sudan is structured into two funding packages :
- 15 million USD bridge loan from the EIF
- 5 million USD mezzanine loan from Finnfund.
The project also receives support from the European Fund for Sustainable Development Plus (EFSD+), under the Global Gateway initiative. This Europe-Africa partnership aims to promote sustainable investments in critical infrastructure.
These resources enable CREI to accelerate the adoption of sustainable energy solutions while contributing to the reduction of carbon emissions. According to Valtter Louhivuori, Finnfund’s representative in Nairobi, this investment aligns with the strategy of promoting digitalization and combating climate change. Mobile connectivity, essential for economic growth, is particularly vital in developing regions.
Installation of Hybrid Solutions
CREI, responsible for the project, has expertise in telecommunications and renewable energy across Africa and Asia. Its CEO, Kadri El Hakim, highlights the importance of the partnership with Finnfund in expanding the telecom network in South Sudan, benefiting both local populations and businesses.
The Finnfund-supported « Africa Connected »program will install 413 hybrid energy solutions across telecom sites in South Sudan. These systems combine solar energy and diesel generators, reducing dependence on fossil fuels. Modeled after similar initiatives in Kenya, the project will benefit over 2 million people out of the country’s 11 million population.
Impact on telecommunications infrastructure
The shift towards hybrid solutions represents a significant technological advancement for the telecom sector. Increased solar energy production reduces the reliance on fossil fuels, lowering operational costs for telecom towers. This transition supports the deployment of a more extensive and reliable network, enhancing access to essential services.
Expanding mobile connectivity in South Sudan
South Sudan has one of the lowest mobile connectivity rates globally. As of January 2024, only 1.36 million people had internet access, representing a penetration rate of 12.1 %. This illustrates the significant challenge the country faces in expanding digital services. The solarization of telecom towers comes at a crucial time, strengthening existing infrastructure and paving the way for rapid mobile service expansion while cutting energy consumption costs.
Technological outlook : LEO Satellites
Complementary initiatives are also underway to further enhance connectivity in South Sudan. In December 2023, the MTN group announced trials of Low Earth Orbit (LEO) satellites to improve internet coverage. These satellites, also employed by services like Starlink, could play a pivotal role in expanding connectivity to remote regions. The pilot project with AST SpaceMobile highlights the telecom sector’s commitment to exploring new technologies to meet the growing demand for connectivity.
