- Serengeti Energy plans clean energy expansion in Africa.
- AFD, Swedish Govt. and STOA are providing $25 million.
The Independent Power Producer (IPP) Serengeti Energy is raising USD 80 million to expand its clean energy development initiatives in Africa. The IPP is acquiring funds from several investors, including Proparco. The French Development Agency (AFD) subsidiary is providing $25 million alongside the Swedish government’s development finance institution Swedfund and STOA, a French impact fund specialising in infrastructure financing.
According to a statement by Proparco, “the investment is made in a region that lacks access to seed capital for energy projects and faces significant needs for additional sustainable energy capacity.” In addition, the Head of Private Equity for Africa and the Middle East, Damien Braud, stated, “by investing in Serengeti Energy, Proparco is strengthening its existing renewable energy portfolio with small hydro and solar power plants in sub-Saharan Africa. It is also an opportunity for Proparco to contribute to sustainable economic development, including climate change mitigation, by supporting access to reliable and affordable renewable energy.
Serengeti Energy is already supported by several other financial partners, including the Nordic Development Fund (NDF), the Norwegian Investment Fund for Developing Countries (NORFUND) and the Kreditanstalt für Wiederaufbau (KfW), the German development agency. The Nairobi-based company is attracting so many international investors because it has succeeded in establishing itself as an independent power producer (IPP) in East Africa over the past nine years by building small hydroelectric and solar power plants at a rapid pace.