Ethiopian firms secure US$1.5 million boost for solar-powered businessgrowth

By Contributor

Five Ethiopian companies are among 19 firms from Kenya, Nigeria, and Ethiopia awarded US$1.5 million to expand access to productive use of energy appliances for small businesses and entrepreneurs across Africa. The funding was announced by CLASP (Collaborative Labeling and Appliance Standards Program) at the Adaptation Investment Summit 2026 and will be awarded through the ProductiveብUse Financing Facility (PUFF).

In a press release sent to EH, it is indicated that the initiative aims to deploy 3,800 productive use equipment (PUE), support the creation of over 3,000 green jobs, and stimulate local economic growth in the three countries.

The Ethiopian beneficiaries are Awdi Negesti Special Purpose Machinery
Manufacturing, Center for Applied Manufacturing Service & Engineering, Green Scene Energy PLC, Inter Ethiopia, and Zicon Trading. Kenya has six beneficiary companies while Nigeria accounts for eight. This latest round of PUFF funding addresses a critical gap in Africa’s energy transition.

Senior Director for Africa at CLASP, Emmanuel Aziebor, highlighted the
significance of the programme. “Africa’s economic future depends not just on
expanding access to electricity, but on ensuring that energy powers businesses, creates jobs, and improves livelihoods,” he said.

Vice President for Africa at the Global Energy Alliance for People and Planet,
Carol Koech, underscored the importance of affordable financing. “We understand that creating access to affordable capital is essential for accelerating the adoption of renewable energy technologies,” she said.

Senior Manager at CLASP, William Mulehi, noted strong market readiness, adding that the funding will help selected companies overcome upfront investment barriers. The selected companies will use the funds to scale production, reduce appliance prices, and expand into new markets. This is expected to enable more Ethiopian, Kenyan, and Nigerian entrepreneurs to grow their businesses and improve livelihoods within their communities.

Although electricity access continues to expand through initiatives such as Mission 300, many small businesses still lack the income-generating appliances needed to turn power into jobs, higher earnings, and greater economic opportunity. Solar-powered water pumps, refrigeration units, milling equipment, and other productive appliances remain largely out of reach for many entrepreneurs due to high upfront costs and inefficient technologies.

The Productive Use Financing Facility (PUFF) builds on a successful first round that provided US$2.7 million between 2022 and 2024, supporting the sale of nearly 16,000 income-generating appliances and directly benefiting over 53,000 people across Africa.

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