A new investment fund which is dedicated to renewable energy in Africa has been launched. The new fund is called Empower Invest, which is registered as an Alternative Investment Fund (AIF) under the Financial Supervisory Authority in Norway.
The fund is as a result of efforts of development partners who put it at the service of Africa. In concrete terms, the new fund will be used to finance small renewable energy projects, ranging from 1 to 10 MW.
Here Is All You Need To Know
- Titled Empower Invest, the fund will contribute to the know-how and equity to implement solar PV, small hydro and hybrid plants.
- It will support projects that are individually too small for traditional project financing. Once completed, Empower will raise green bonds to finance the portfolio of projects.
- The fund which will be managed by Empower New Energy will invest in a pipeline of reserved projects prepared by the manager (Empower New Energy) in Kenya, Rwanda, Ghana, Nigeria, Ethiopia and Tanzania, amongst others.
- The initiators behind Empower Invest, which is registered with the Financial Supervisory Authority in Norway as an Alternative Investment Fund (AIF), targets to raise $50 million.
- Already, over $8m has been raised from Norfund, a Norwegian government private equity firm, and Electrification Financing Initiative (ElectriFI), an EU-owned investment fund that aims to support the private sector in providing electricity in underserved areas in the Serie A share issue.
“It is amazing that we now have succeeded to raise an equity fund that focuses on local solar PV, hybrid and hydro projects. This is the first fund of its kind, and most needed. ” said Terje Osmundsen, founder and CEO of Empower New Energy.
- Several private investors also participated in Empower Invest’s fundraising efforts. This is the case of Malthe Winje Automation AS, the Elisabeth Grieg and Stig Grimsgaard Andersen family, Doctor Magne Orgland, Harald Magnus Andreassen and Svein Tveitdal.
“We are delighted to support, for a decade, the ambitions of the Empower Invest fund’s business model, which aims to produce more than 600 GWh of clean energy per year, which will reduce CO2 emissions by 320,000 tonnes per year and create thousands of new jobs and electrical connections,” explains Dominiek Deconinck, ElectriFI’s Director.
- Series B issue of approximately $40 million is planned for 2020.
Read also: African Renewable Energy Startups Get A New Fund
Why The Investors Are Investing
“Norfund sees a huge need for increased investment in local clean energy production in Africa and developing countries in general. The collaboration with Empower will be an important platform for raising private capital for this market” stated Norfund CEO Tellef Thorleifsson.
Stig Grimsgaard Andersen, a private investor in the fund was quoted as saying that:
“If impact-investing is to make a difference, it is important that the investments create value for both financial investors, local communities and the environment. We believe the Empower Fund is an important innovation in this area.”
Harald Magnus Andreassen, chief economist and one of the private investors, noted that local projects and smaller investment amounts receive little attention from international investors and lenders.
However, “the Empower Fund is an important initiative to cover this gap in the market,” said Andreaseen.
To learn more about the fund manager, click here
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world