EAIF Pledges $30 Million Investment to AXIAN Energy’s Ambitious Renewable Energy Expansion in Africa
The Emerging Africa Infrastructure Fund (EAIF), a member of the Private Infrastructure Development Group (PIDG), has committed a senior secured loan facility of US$30 million to AXIAN Energy. This strategic investment is crucial to AXIAN Energy’s plan to scale up its renewable energy generation capacity to over 460 Megawatts (MW) across Africa in the next decade. Initially rooted in oil and gas distribution through its subsidiary Jovena since 2001, AXIAN Energy strategically shifted its focus to renewable energy in 2017.
- Renewable Energy Expansion: The $30 million investment from EAIF will play a pivotal role in supporting AXIAN Energy’s ambitious goal of expanding its green energy initiatives. The plan is to diversify activities by acquiring, developing, and executing greenfield utility-scale solar projects across various regions in Africa, including Senegal, Madagascar, Mozambique, Tanzania, Sao Tome & Principe, Cabo Verde, Gabon, Rwanda, and more.
- Project Development Facility: EAIF’s Project Development Facility is designed to tackle challenges in emerging and frontier markets by developing greenfield projects based on international standards. This enhances the bankability and attractiveness of these projects for funding post-development.
- Impact on Rural Areas: The investment aligns with EAIF’s mission to enhance energy accessibility, particularly in rural areas where stable power is scarce. AXIAN Energy’s subsidiaries focused on delivering distributed energy solutions in these regions are expected to benefit, thereby improving the lives of citizens and creating employment opportunities.
- Strategic Repositioning: Benjamin Memmi, CEO at AXIAN Energy, sees this financial commitment as a significant moment in their sustainable development journey. The funding not only accelerates their transition to renewable energy but also underscores their commitment to delivering clean and accessible power to communities across the continent.
- Inflationary Environment: Tidiane Doucoure, Director at Ninety One, the fund manager of EAIF, emphasizes the importance of this financing, especially in the current inflationary environment. EAIF’s support for AXIAN Energy’s ambitious energy transition plan is geared towards facilitating the strategic repositioning of the Group and the provision of clean energy on a continent-wide scale.
EAIF’s $30 million investment in AXIAN Energy signifies a major step towards achieving sustainable and clean energy goals in Africa. The funding is set to drive the expansion of renewable energy projects across multiple countries, addressing energy challenges in rural areas and contributing to the strategic repositioning of AXIAN Energy as a key player in the continent’s green energy landscape. This commitment reflects a shared vision between EAIF and AXIAN Energy to make clean and accessible power a reality for communities in Africa.