African Infrastructure Investment Managers (AIIM) and Nedbank Energy Finance have partnered to back renewable energy provider Sola Group with a R400 million ($26 million) investment.
The funds will be used to construct 40 megawatts of commercial and industrial solar photovoltaic (PV) facilities in Southern Africa.
“Investing in clean energy infrastructure is a key aspect to bolstering the African economy,” said Mitesh Pema, investment director at AIIM. “Funding these renewable energy projects will enable industrial facilities to access secure and cheaper power, freeing up CAPEX for investment into their core business activities.”
Sola Group has already signed 15 megawatts of solar PV projects in the region through the existing renewable energy fund. The company has an extensive track record of building solar PV plants in Southern Africa.
“This partnership brings together three highly experienced entities whose combined skills offer consumers clean energy solutions at a time when our country desperately needs it,” said Chris Haw, chairperson of the Sola Group.
In late July, AIIM also closed its flagship African infrastructure fund with $320 million in capital commitments. That fund will invest in the power, transport and midstream energy sectors in sub-Saharan Africa, in areas with the biggest disconnect between demand for critical infrastructure and supply of available capital.