UK’s development finance institution British International Investment (BII) is investing up to $25m (€23.3m) in a Meridiam-owned renewable energy projects platform in Tanzania.
BII is providing an initial $15m to Rift Valley Energy (RVE) to fund the firm’s investment and development plan for future renewable energy projects, with the potential to increase the capital commitment by a further $10m.
BII’s capital will be used to support the development of new wind and hydropower projects, complementing RVE’s existing run-of-river hydro facilities and Tanzania’s sole operational wind farm, Mwenga Wind.
RVE – acquired by asset manager Meridiam in 2023 – owns, operates and is developing a portfolio of 30MW of renewable energy generation alongside its subsidiary Mwenga Power Services, which operates two rural distribution networks in Tanzania.
Nick O’Donohoe, BII’s CEO, said: “Millions of people in Tanzania do not have access to energy and this greatly impacts on their ability to access essential services and opportunities.
“This agreement with Meridiam to support Rift Valley Energy will improve the lives of thousands of people in rural Tanzania as the energy it will provide will empower many sectors which will help to enhance educational opportunities, healthcare services, job creation and industrial productivity.”
Meridiam’s deputy CEO and Africa head, Mathieu Peller, said: “Rift Valley Energy is an investment which is true to Meridiam’s mandate and purpose, and we are pleased to partner with BII to grow the renewable energy projects being developed by the company.
“This facility affirms our confidence in Tanzania as a market, where the government has clear and ambitious economic development plans which we look forward to supporting through sustainable investment.”
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