Currency risk is one of the most persistent barriers to financing minigrids in Sub-Saharan Africa. Because minigrid revenues are earned in local currencies while debt is typically denominated in US dollars or euros, projects are exposed to exchange-rate volatility, limited FX availability, and liquidity constraints, all of which raise financing costs and reduce bankability. Building on the experiences of countries in the Africa Minigrids Program (AMP) and beyond, this report highlights practical approaches to managing, rather than eliminating, currency risk, drawing on case studies, interviews with AMP countries, and analysis of existing solutions already deployed by key stakeholders.
