Africa Greenco
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Project overview
Africa GreenCo (AGG) acts as an intermediary offtaker and service provider, purchasing power from renewable IPPs and selling that electricity to utilities and private sector offtakers (i.e. commercial and industrial users) and markets of the Southern African Power Pool. In that perspective, the company intends to address the poor creditworthiness of the state-owned utilities. AGG aims to establish dedicated entities in selected countries; starting with Zambia.
Funding objective
EDFI ElectriFI committed a total investment of USD 5.5 m in Africa GreenCo Group as part of a USD 15.5m equity round with InfraCo Africa and Danish DFI IFU dedicated to the funding of a Liquidity Buffer covering GreenCo’s payment obligations under the PPAs, and the funding of working capital needs of the company for the next 2 years.
Investment rationale
EDFI ElectriFI is supportive of this’s investment opportunity as it will support an innovative model that has the potential to unlock a significant pipeline of renewable energy projects in Zambia and in other Southern African countries, creating high long-term impact via new renewable energy capacities.
Key Indicators
Financial Instrument
Equity
Amount
USD 5.5m (EUR 4.9m)
Year
November 2021
