By Juliet ETEFE
The Facility Investing for Employment (IFE), representing the KfW Development Bank and the German Federal Ministry for Economic Co-operation and Development (BMZ), has finalized a €1.1 million grant agreement with Prefos Limited. This agreement is intended for the establishment of a solar assembly plant in Ejisu, Ashanti Region.
The IFE is contributing 20.9 percent amounting to €1.1m towards the assembly plant, while Prefos Limited, an indigenous firm, will provide the remaining 79.1 percent – €4.16 million.
The support provided will facilitate the construction and operation of an assembly plant capable of producing and assembling 75 MW of semi-knocked down solar-powered streetlights and solar panels. These products will be targeted for sale in both domestic and international markets.
The primary goal of the project is to generate 141 job opportunities while also enhancing working conditions for the existing 150 employees, thereby positively impacting their incomes.
During the signing ceremony held in Accra, Steffen Kuhl, Managing Director at IFE, emphasized the organization’s dedication to backing innovative projects that foster job creation in Ghana.
He explained that IFE investment is part of a larger project that includes the construction of a warehouse for the storage of solar-powered LEDs and grids of LEDs; a workshop for maintenance and installation purposes and an administration block.
It also includes building a new 570 kVA solar farm, to provide an alternative sustainable source of electricity to the assembly line and for community use with an expected yearly power export of roughly 100,000 kVA; and the procurement and installation of a 480kVA standby power generator to supplement the national grid for ensuring quality and reliability of power supply at the project site.
The planned factory would have the capacity to assemble 600 pieces of semi knocked down (SKD) LEDs and 500 pieces of solar-powered LEDs per day, he added.
On the impact of the project, he stated that: “Ghana generates electric power through several means including hydro, thermal, and solar power. Even though there is adequate power generation in the country, there are inefficiencies in power distribution and maintenance of the infrastructure. Many streetlights are sodium-based and consume large amounts of energy. LEDs would significantly reduce power consumption and save the municipalities money and enable them to install more streetlights in underserved areas of the country”.
For his part, the Executive Director of Prefos Limited, Alexie Kwasi Fosu, emphasised that the move is a significant stride towards job creation and the provision of apprenticeship opportunities.
He said the commitment of Prefos Limited to the goals of this partnership is exemplified by its ongoing flagship project which transforms street lighting and beautification efforts from High-Pressure Sodium Lights to LED and solar lights.
“As the world struggles with the increasing impact of climate change, there is an urgent need for environmentally friendly technologies capable of securing the well-being of our planet for the benefit of future generations.
This partnership is timely and essential as it advances the global quest for solutions in this domain. Through this support, Prefos Limited proudly stands as a beacon of hope in this endeavor, and I would like to take the opportunity to extend enormous appreciation to the German government for its support and collaboration,” he said.
Political Counsellor at the German Embassy, Paulina Okkens is confident the project will enable Prefos Limited to procure, replace, repair and install new street lighting with solar-powered LEDs in Ghana and neighboring countries, thus promoting the use of renewable energy.
“The use of the solar-powered LED streetlights would significantly reduce power consumption and save the municipalities money and enable Prefos Limited to install more streetlights in underserved areas of the country,” she noted.
She expressed gratitude to Prefos Limited for their dedication to improving the energy sector by providing streetlights in various parts of the country in underserved areas to improve safety and quality of life in general in these areas.
“Germany already supports eight projects in Ghana with a total value of approximately €55m including an overall grant contribution of approximately €19m, in sectors ranging energy, agribusiness, consumer goods (production of wooden handicraft [musical instruments among the others] exported for the benefit of the hospitality sector in Europe and US), textile, electrical engineering to services, supporting economic zones. Ghana is performing as one of the most successful countries under IFE,” KfW Country Director, Arndt Wierhiem stated.
The aim is to create up to 100,000 jobs, in the eight IFE partner countries including Ghana, to improve local working conditions and social protection, Wierhiem Adds.
