BII signs agreement with Meridiam to provide US$15 million to Rift Valley Energy

The DFI’s support will contribute to the financing and installation of new wind and hydropower capacity – increasing the national grid’s supply of sustainable and affordable electricity to businesses and communities in low-income areas in rural Tanzania. The projects will sit alongside RVE’s existing run-of-river hydropower projects, as well as the only operational wind farm in Tanzania – Mwenga Wind.

RVE, a Tanzania-based renewable energy infrastructure development company, is wholly owned by Meridiam, an independent investment Benefit Corp. and an asset manager that specialises in the development, financing, and long-term management of sustainable public infrastructure. Meridiam acquired RVE in 2023 with a view to grow its generation assets.

RVE owns, operates and is developing a portfolio of 30 MW of renewable energy generation alongside its subsidiary Mwenga Power Services, which operates two rural distribution networks (460 km long); all of which are located in the Southern Highlands of Tanzania. Beyond RVE, Meridiam recently invested in 100 MW of wind assets in Kenya reinforcing its regional footprint in renewable energy. BII has partnered with Meridiam over several years, investing in past and current funds, which have successfully developed major greenfield and brownfield infrastructure projects in Africa.

National electrification rate in Tanzania is 37% and as low as 24% in rural areas. With the financing from BII, RVE is expected to support an additional 7.6 MW of new renewable energy assets which will provide power to about 170 000 people per year and connect 4000 businesses and households to the grid for the first time. The provision of clean and affordable power to local industries including factories that process tea, veneer, timber, as well as water and pole treatment plants is expected to create 1800 jobs.

BII’s Chief Executive Officer, Nick O’Donohoe, said: “Millions of people in Tanzania do not have access to energy and this greatly impacts on their ability to access essential services and opportunities. This agreement with Meridiam to support Rift Valley Energy will improve the lives of thousands of people in rural Tanzania as the energy it will provide will empower many sectors which will help to enhance educational opportunities, healthcare services, job creation and industrial productivity.”

Meridiam’s Deputy CEO and Africa Head, Mathieu Peller, added: “Rift Valley Energy is an investment which is true to Meridiam’s mandate and purpose, and we are pleased to partner with BII to grow the renewable energy projects being developed by the company. This facility affirms our confidence in Tanzania as a market, where the government has clear and ambitious economic development plans which we look forward to supporting through sustainable investment.”

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