Project detail - RURAL SPARK B.V.

RURAL SPARK B.V.

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Who is our client

Rural Spark BV is a Dutch company founded in 2013, which designs, develops and realizes energy solutions for emerging markets. The solutions of Rural Spark enable households and small businesses in remote areas in emerging markets, to gain access to electricity where no grid connection is available.

Funding objective

FMO NL Business will be co-funding a feasibility study to enter the Burkina Faso market with a local distribution partner, including a pilot of 1000 solar home systems.

Why we fund this project

We fund this as part of FMO NL Business’ mandate to support Dutch businesses with high impact projects in emerging markets. The main reason FMO NL Business invests in this project is providing access to renewable energy to the Bottom of the Pyramid in remote rural Burkina Faso. Access to energy will subsequently allow economic growth in these communities, reduce inequalities between urban, peri-urban and rural communities and reduce poverty. Our support will also open up a new market for Dutch exporter Rural Spark B.V.

Environmental and social rationale

The project provides positive impact in providing electricity solutions with a sustainable technology. FMO E&S categorization is B but could become B+ after further impact assessment is done during the feasibility study. Although the study does not pose material E&S risks, the pilot might potentially trigger IFC Performance Standards 2, 3 and 4. The main risk is linked to the ability/capacity of Rural Spark and its distribution partner in Burkina Faso to ensure that their consumers are sufficiently protected by adopting the GOGLA principles. In addition, security risks associated with the workers of the client and the local subcontractors is a general concern in Burkina Faso where the state of emergency has been declared in several states. Conditions to mitigate the risks are clearly embedded in the Development Accelerator Agreement and must be complied with as a result of the feasibility study and before the pilot starts. The main condition is the ex-ante self-assessment by Rural Spark and their local distributor to show that they are able to comply with the GOGLA principles before the pilot starts. This should be audited by an independent party during the pilot to ensure continuous compliance.

Website client
http://www.ruralspark.com
Region
Africa
Country
Burkina Faso
Sector
Energy
Signing date
3/4/2021
Total FMO financing
EUR 0.17 MLN
Fund
Development Accelera
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)