A British green technology company is seeking to help create Africa's "energy grid of the future" to reduce reliance on fossil fuels after signing an agreement to invest up to $75 million (£55m) in Nigeria by 2030.

The company, MOPO – based in Sheffield – creates hubs to charge and rent solar-powered batteries in communities where reliable access to electricity is difficult. The batteries themselves are designed, tested and managed from the city. The company 1.6 million battery rentals a month in Nigeria, the Democratic Republic of Congo (DRC), Sierra Leone, Liberia, Chad, and Uganda, up from 150,000 in 2023. In total, MOPO has completed 45 million battery rentals across the continent.

The fresh funds include backing from Octopus Energy and other investors including Norfund – the Norwegian government's development investment fund – and the World Bank’s International Finance Corporation (IFC). They will support the development of MOPOGrid, which will expand the services of MOPO’s hubs to help provide cabled electricity, on top of the battery rentals. Recently, MOPO signed an agreement with Nigeria's Rural Electrification Agency to fast-track the pilot phase of this network across the country.

Balogun Adedayo Michael, a tailor based in Epe – just outside Lagos – is clear about the importance of reliable access to electricity, having been without access to the grid for two years. We’ve been suffering because without electricity, we can’t use the industrial machine to sew properly.” Mr Michael said.

He had been using a petrol-powered generator, but fuel prices kept increasing and the generator itself kept breaking down. During local celebrations, when Mr Michael had a high demand from his customers, he said he had to make a change and rented a MOPO battery for power. “I didn’t disappoint them.” he said. In future, instead of renting batteries, Mr Michael could be linked up to their nearest MOPO hub with overhead cables that would make his electrical supply even more reliable.

The funding for MOPO comes as countries deal with significant aid cuts to help fund an increase in UK defence funding, with spending set to fall by around 42 per cent – or £6.5 billion – from a record high in 2023 to a historic low in 2027/28, according to a report by the Independent Commission for Aid Impact (ICAI). Nine African countries are set to see their UK bilateral aid cut by more than 80 per cent by 2028/29, as bilateral spending falls from £1.6bn to under £700m. Nigeria will see its aid cut by around 50 per cent, to £68m.

MOPO’s chief operating officer, Luke Burras, said of their expansion: “Being headquartered in Sheffield, we’re very aware of the industrial history. Now we’re innovating with two technologies which are at the heart of another industrial revolution, battery and solar... To us, the grid of the future is super flexible and powered by sunshine.”

The Foreign, Commonwealth and Development Office (FCDO) has said it is pivoting towards investor partnerships with nations, with support of MOPO a reflection of that. Since 2020 the UK has provided MOPO with nearly £4m in investments, while the UK’s development finance institution, British International Investment (BII), has invested £5.2m in MOPO’s expansion in the DRC.

The foreign secretary, Ed Miliband, said of MOPO: “By backing companies like MOPO to grow internationally, they can expand their vital work bringing reliable clean energy to some of the most vulnerable communities across Africa.

“The global clean energy transition is one of the biggest economic opportunities of our time and the UK is at the forefront of it,” he added.

This article has been produced as part of The Independent’s Rethinking Global Aid project