This funding marks British International Investment’s (BII) inaugural venture into Tanzania’s sustainable energy sector.
The investment will support Rift Valley Energy’s wind and hydroelectric projects in a country where the national electrification rate stands at 37%.
Rift Valley Energy Secures Funding for Expansion
Rift Valley Energy (RVE), a platform developing sustainable energy projects in Tanzania, has secured $15 million in funding from British International Investment (BII). The loan agreement signed on Tuesday, June 18, 2024, was between BII and Meridiam, the asset manager that owns RVE.
The funding, which has the potential to increase to $25 million, will partially support RVE’s renewable energy projects in Tanzania.
It will finance the installation of new wind and hydroelectric capacity, bolstering the national grid’s electricity supply for businesses and rural communities.
Improving Lives Through Energy Access
Nick O’Donohoe, CEO of BII, emphasized the positive impact of this investment, stating, “The agreement will improve the lives of thousands of people in rural Tanzania, as the energy it provides will strengthen many sectors.
This will contribute to enhancing educational opportunities, healthcare services, job creation, and industrial productivity.”
Mathieu Peller, Deputy Managing Director and Head of Africa at Meridiam, expressed confidence in the Tanzanian market, stating, “This installation confirms our confidence in the Tanzanian market, where the government has clear and ambitious economic development plans that we are eager to support through sustainable investments.”
Addressing Electrification Challenges
In Tanzania, the electrification rate is 37%, with only 24% of rural areas having access to electricity. This investment by British International Investment marks its first foray into sustainable energy in the country, although it boasts a diverse portfolio encompassing telecoms and financial services in Tanzania. Within the East African sub-region, its investments are currently valued at $1.4 billion.