Africa Greenco

Period

2021

Country

Zambia

Sector

Renewable energy

Financial facility

ElectriFI

ElectriFI committed a total investment of USD 5.5 m in Africa GreenCo Group as part of a USD 15.53m equity round 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.

Project overview

ElectriFI, together with InfraCo Africa and Danish DFI IFU have together committed USD 15.5m to enable Africa GreenCo to scale its innovative offering as Zambia’s first renewable energy buyer and services provider.

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 is considering a total investment of USD 5.5 m in Africa GreenCo Group as part of a USD 15.5m equity round 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.