UK (Commonwealth) _The UK development finance organization and impact investor, British International Investment (BII), has committed to giving Rift Valley Energy (RVE), a platform for sustainable energy, $15 million initially, with the possibility of expanding to $25 million. Meridiam is the owner and operator of RVE. With this funding, RVE will be able to carry out its ambitious ambitions for development and investment in future sustainable energy projects in Tanzania.
With this financing from BII, new wind and hydropower capacity will be financed and installed, boosting the amount of cheap, sustainable electricity that companies and residents in Tanzania’s low-income rural areas can access through the national grid. These additional projects will supplement Tanzania’s sole working wind farm, Mwenga Wind, and RVE’s current run-of-river hydroelectric power plants.
Fully owned by Meridiam, an independent investment firm and asset management with a focus on sustainable public infrastructure, RVE is a Tanzania-based firm that develops renewable energy infrastructure. In 2023, Meridiam expanded its manufacturing assets by acquiring RVE.
Along with its subsidiary Mwenga Power Services, which runs two 460-kilometer national distribution networks, RVE manages and expands a portfolio of 30 MW of renewable energy generating. These are found in Tanzania’s southern highlands.
Meridiam has expanded its regional presence in renewable energy by investing in 100 MW of wind energy in Kenya in addition to RVE. For many years, BII has collaborated with Meridiam, investing in both former and present funds that have effectively created significant brownfield and Greenfield infrastructure projects throughout Africa.
Tanzania has a national electrification rate of 37%, with rural regions having a lower rate of 24%. RVE anticipates that the grant from BII will enable an extra 7.6 MW of renewable energy sources, providing electricity to almost 170,000 people yearly and establishing first-time connections between 4,000 homes and businesses and the electrical grid.
It is anticipated that 1,800 employment will be created when clean, reasonably priced electricity is supplied to nearby enterprises, such as those that process tea, veneer, and wood, as well as water and pole treatment facilities.
During his week-long trip to Tanzania and other parts of East Africa, Chief Executive Officer Nick O’Donohoe of BII stated that millions of Tanzanians lack access to energy, which significantly affects their capacity to take advantage of opportunities and get basic services.
Thousands of people in rural Tanzania will have better lives thanks to this deal with Meridiam in support of Rift Valley Energy, which will enhance several sectors and increase industrial production, job creation, healthcare, and educational prospects.
The Deputy CEO and Head of Africa at Meridiam, Mathieu Peller, continued, saying, “Rift Valley Energy is an investment that is true to Meridiam’s mandate and purpose.” We are excited to collaborate with BII to grow the company’s sustainable energy initiatives. This facility demonstrates our belief that Tanzania is a market with well-defined, ambitious objectives for economic development, which we are dedicated to bolstering with long-term investments.
Meridiam, an asset manager that specializes in the creation, funding, and long-term administration of sustainable public infrastructure, purchased RVE last year. According to Nick O’Donohoe, CEO of BII, “millions of people in Tanzania lack access to energy, which has a significant impact on their ability to access opportunities and essential services.”
Meridiam’s agreement “will improve the lives of thousands of people in rural Tanzania as the energy it provides will empower many sectors which will help to enhance industrial productivity, job creation, healthcare services, and educational opportunities,” according to O’Donohoe.
In Tanzania, about 37% of people have access to electricity; in rural regions that number drops to 24%. With the help of the BII money, RVE hopes to link 4,000 new companies and homes to the grid and supply electricity to around 170,000 people annually.
The development of inexpensive, clean energy might lead to the creation of 1,800 employment in the region’s industries, which include those that treat water, tea, veneer, and wood.
According to Meridiam’s deputy CEO, Mathieu Peller, the BII’s pledge validates the market’s trust in Tanzania, a country with well-defined and ambitious ambitions for economic growth, which we want to further with sustainable investment.
With a $1.4 billion portfolio, BII has a long history of making investments in East Africa. More than $355 million was invested by BII in several industries last year, including financial services, telecoms, infrastructure, and sustainable energy.
