South Korea’s Shinhan Bank has joined the Hardest-to-Reach Initiative headed by Acumen. Photo courtesy of Shinhan Bank
SEOUL, Sept. 24 (UPI) — South Korea’s Shinhan Bank said Wednesday that the lender has joined the $246.5 million Hardest-to-Reach Initiative, headed by Acumen, a nonprofit global impact organization.
Built on a combination of public and private financing, the initiative is aimed at bringing energy access to people in the least electrified regions of Sub-Saharan Africa, including such countries as Malawi, Burkina Faso and Sierra Leone.
The Acumen program consists of two vehicles: one that provides impact-linked loans to enterprises and another that builds markets through a mix of equity, debt, grants and technical assistance.
The project is expected to enable around 70 million people from 17 African countries, who are still living in darkness, to gain off-grid solar access, thus avoiding the emission of 4 million tons of carbon dioxide, according to Acumen.
Among them, 50 million will be first-time energy users. Acumen noted that 600 million sub-Saharan Africans still lacked access to electricity as of 2023.
Shinhan Bank did not disclose how much it provided to the HWR Initiative.
“This innovative blended finance structure enables us, as a leading Korean bank, to channel capital into the toughest markets and reach those most in need — helping provide clean, affordable energy where it matters most,” Shinhan Bank Deputy President Seo Seung-hyeon said in a statement.
In addition to Shinhan Bank, other global organizations and funds are taking part in the initiative, including Green Climate Fund, International Financial Corporation, Nordic Development Fund, British International Investment and Soros Economic Development Fund.
Acumen’s founding CEO Jacqueline Novogratz said the coalition would step up with capital designed not to just to invest, but to solve.
“This is the first time public, private and philanthropic partners have come together behind a model built to reach the hardest-to-reach. It’s a clear example of what’s possible when capital aligns with purpose to tackle energy poverty at scale,” she said.