BBOXX Rwanda, Kenya, and DRC
Project Description
On October 30, 2020, February 8, 2021 and February 12, 2021, MIGA issued guarantees totaling US$43.1 million to cover (i)
equity and quasi-equity/shareholder loan investments by AIIF 3 Clean Energy (AIIF 3)[2], a Mauritius incorporated holding company managed by African Infrastructure Investment Managers (AIIM) of South Africa, through Beyond Energy Investments Limited, into BBOXX Capital Rwanda Ltd (BBOXX Rwanda) in Rwanda, BBOXX Capital Kenya Ltd (BBOXX Kenya) in Kenya and BBOXX Capital RDC S.A.R.L.U (BBOXX DRC) in the Democratic Republic of the Congo (DRC) and (ii) a non-shareholder loan by the Facility for Energy Inclusion Off-Grid Energy Access Fund
(FEI-OGEF LP)[1] , a Mauritius incorporated private debt fund managed by Lion’s Head Global Partners, into BBOXX DRC. The guarantees to AIIF 3 and FEI OGEF LP will have a term of 10 years and 5 years, respectively, and will provide coverage against the risks of Expropriation, Transfer Restriction and Currency Inconvertibility, and War and Civil Disturbance. MIGA will share a first loss layer with the IDA Private Sector Window MIGA Guarantee Facility for MIGA’s exposure to DRC and Rwanda under the project.
MIGA’s risk exposure under the guarantee is proposed to be shared with the IDA Private Sector Window (“PSW”). For more information on the IDA18 PSW, please access the IDA18 Private Sector Window website. The PSW involvement will be via a shared first loss facility that will assist in spreading the risk and result in a reduced cost of the guarantee for the project enterprise. The project meets the minimum concessionality principle and the amount of subsidy is estimated to be less than 0.8% of the total project cost over the envisaged 20-year guarantee period.
Environmental Categorization
The projects are categorized as Category B according to MIGA’s Policy on Environmental and Social Sustainability (2013) The projects are expected to have limited site-specific environmental and social (E&S) impacts and risks. These impacts and risks can be avoided or mitigated by adhering to recognized Performance Standards (PSs), procedures, Environmental, Health and Safety (EHS) guidelines, and design criteria. Key E&S risks associated with this investment include: (i) corporate EHS management structure and systems; (ii) labor and working conditions including adequate occupational health and safety (OHS) and operational hazards related to transportation (at the community and worker level), installation and maintenance of the SHS kits and LPG cylinders; (iii) waste management (including e-waste); (iv) contractor management; (v) community health and safety along the transportation routes; and (vi) life, fire and safety and emergency response especially related to LPG cylinder transportation. The Environmental and Social Review Summary is available here .
Development Impact
Access to electricity remains low across sub-Saharan Africa with some 600 million people living without electricity on the continent. The project supports the national electrification targets of Rwanda, Kenya, and DRC where grid electrification in various regions is either unavailable, unreliable, or cost-prohibitive. In this context, off-grid solar power generation solutions such as those provided by BBOXX enable household electrification using an environmentally and economically sustainable technology. The primary development impact of the project will be increased access to and reliability of electricity among underserved populations. BBOXX’s expansion into LPG delivery will support cleaner cooking initiatives with the potential for environmental and health benefits. Additionally, technicians will be employed and trained by the project enterprises (throughout the duration of the MIGA guarantee period and beyond) to carry out installations and maintenance of the BBOXX products, thereby providing skilled employment opportunities in the host countries. Support for the project is consistent with MIGA’s strategic emphasis on low-income and fragile and conflict-affected countries and projects with climate benefits.
[1] MIGA extended the guarantee to Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI-OGEF LP) by US$ 14 million to US$ 20 million for the period of 9 years on February 14, 2022.
[2] The Rwanda and Kenya BBOXX projects supported by AIIF3 were cancelled effective June 30, 2023.