British International Investment (BII), a UK development finance institution, agreed to provide $15 million to Rift Valley Energy (RVE), a renewable energy company in Tanzania. The funding could be increased to $25 million.
The money will help RVE build new wind and hydropower projects. This will increase the amount of clean and affordable electricity available to businesses and communities in rural Tanzania. The projects will connect to existing hydropower plants and the only wind farm in Tanzania.
RVE is owned by Meridiam, an investment company focused on sustainable infrastructure. Meridiam recently bought RVE to increase its renewable energy production.
RVE currently operates 30 megawatts of renewable energy generation in Tanzania. It also manages two rural electricity distribution networks. Meridiam also invested in wind energy projects in Kenya. BII has invested in Meridiam in the past.
Currently, only 37% of Tanzania has access to electricity, which is even lower in rural areas. The new RVE projects are expected to provide power to 170,000 people and connect 4,000 businesses and households to the grid for the first time. Access to clean and affordable electricity is expected to create new jobs in local industries.
BII’s CEO said the project will improve people’s lives in rural Tanzania by providing power for essential services and businesses. Meridiam said they are pleased to partner with BII to grow RVE’s renewable energy projects.
BII has a history of investing in East Africa and supporting clean energy projects. Its portfolio in East Africa is currently valued at $1.4 billion. It recently invested in telecommunications infrastructure, other renewable energy projects, and banking in East Africa.
BII has an office in Nairobi, Kenya, and Meridiam has a regional office in Addis Ababa, Ethiopia.
