In a groundbreaking move, the Emerging Africa Infrastructure Fund (EAIF), a prominent member of the Private Infrastructure Development Group (PIDG), has committed a substantial senior secured loan facility of US$30 million to AXIAN Energy. This strategic investment serves as a linchpin in AXIAN Energy’s ambitious plan to scale up its renewable energy generation capacity to an impressive 460 Megawatts (MW) across Africa within the next decade.
AXIAN Energy, initially established in 2001 through its subsidiary Jovena, first made its mark in the oil and gas distribution sector. However, in a strategic pivot in 2017, the company redirected its focus towards renewable energy, marking a significant commitment to sustainability and clean energy initiatives.
The financial commitment from EAIF is poised to significantly fortify AXIAN’s green energy initiatives, propelling the Group into a leadership position in the renewable energy sector. This substantial investment is part of AXIAN Energy’s broader strategy to diversify its activities, with a specific focus on acquiring, developing, and executing greenfield utility-scale solar projects. These projects are slated to be spread across various regions, including Senegal, Madagascar, Mozambique, Tanzania, Sao Tome & Principe, Cabo Verde, Gabon, Rwanda, and beyond.
EAIF’s Project Development Facility plays a crucial role in overcoming challenges faced by emerging and frontier markets. By adhering to international standards, this facility enhances the bankability and attractiveness of greenfield projects for funding post-development. The initiative aligns with EAIF’s mission to foster sustainable development and enhance energy accessibility in regions that need it the most.
In addition to providing financial support, EAIF’s investment is strategically positioned to facilitate the successful development and financing of greenfield renewable projects. The overarching goal is to elevate the utilization of clean power for both commercial and residential purposes, generating employment opportunities and significantly improving the quality of life for citizens across Africa.
This financial injection from EAIF is not merely a capital infusion; it is a strategic partnership that aims to revolutionize the energy landscape in Africa. By focusing on greenfield utility-scale solar projects, AXIAN Energy and EAIF are contributing to the continent’s sustainable future, addressing energy challenges and creating a more resilient and eco-friendly power infrastructure.
Furthermore, EAIF’s investment is perfectly aligned with its mission to enhance energy accessibility, particularly in underserved rural areas. AXIAN Energy’s subsidiaries, with a dedicated focus on delivering distributed energy solutions, will play a pivotal role in bringing stable power to households and businesses where it has historically been scarce.
Benjamin Memmi, CEO at AXIAN Energy, expressed the significance of this financial facility in the company’s commitment to sustainable development. The funding not only accelerates their transition to renewable energy but also underscores their dedication to delivering clean and accessible power to communities across the continent.
Tidiane Doucoure, Director at Ninety One, the fund manager of EAIF, emphasized the importance of this financing in the current inflationary environment. He highlighted EAIF’s unwavering support for AXIAN Energy’s ambitious energy transition plan, aiming to facilitate the strategic repositioning of the Group and the provision of clean energy on a continent-wide scale.
in conclusion, EAIF’s $30 million commitment to AXIAN Energy marks a transformative moment in the realm of sustainable development and renewable energy in Africa. This strategic partnership not only addresses the urgent need for clean energy but also sets a precedent for impactful collaborations between financial institutions and renewable energy pioneers. The financial backing from EAIF serves as a catalyst for AXIAN Energy’s vision to reshape the energy landscape across the continent, driving positive change and fostering a more sustainable future for all.
Source: Solar Qater