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Tuesday, June 18, 2024

Local weather Fund Managers (CFM) appointed to handle Southern African Energy Pool’s (SAPP) USD$1.3 Billion Regional Transmission Infrastructure Financing Facility (RTIFF)

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New facility to strengthen Southern African energy grid by funding cross-border power transmission infrastructure; Blended finance mechanism allows participation of personal and public capital at scale; Enhanced entry to dependable, reasonably priced, and renewable power in 16 SADC member states.

The Southern African Energy Pool (SAPP), in partnership with the Southern African Growth Neighborhood (SADC), as we speak introduced the appointment of climate-centric blended finance fund supervisor Local weather Fund Managers (CFM) to handle its Regional Transmission Infrastructure Financing Facility (RTIFF), a USD 1.3 billion goal facility targeted on bettering strategic interconnection and cross-border power transmission within the Southern Africa area.  

Power transmission infrastructure initiatives are notoriously high-risk and capital-intensive, making them difficult to fund independently via sovereign capital alone. RTIFF’s blended finance mannequin overcomes this by using public capital to stability threat and allow personal capital to enter. The ability will enhance power transmission inside and between the 16 SADC member states and with different energy swimming pools, producing long-term power provide safety, financial development, and local weather resilience via the inclusion of sustainable power sources.

The ability, which launches with USD 20 million in commitments from SAPP, targets a primary shut of USD 500 million in 2025 to be raised from private and non-private sector traders domestically and internationally and a remaining shut of USD 1.3 billion inside 24 months. The ability could have a fund lifetime of as much as 20-25 years.

RTIFF will prioritize initiatives that concentrate on connecting at present unconnected SAPP members, assist relieve congestion bottlenecks to regional electrical energy buying and selling, promote inter-continental energy buying and selling via transmission corridors, and help the adoption of recent technology renewable power house within the area. 

SAPP is a cooperation of 12 Southern African international locations represented by their nationwide energy utilities and a few personal utilities below the auspices of the SADC. SAPP members Angola, Botswana, Democratic Republic of the Congo, Eswatini, Lesotho, Mozambique, Malawi, Namibia, South Africa, Tanzania, Zambia, and Zimbabwe have created a typical energy grid between their international locations. The SAPP operates a aggressive electrical energy market within the SADC area. RTIFF will present energy corporations and undertaking builders working to deal with transmission points with entry to affected person capital and growth experience to ascertain strategic interconnections that permit for elevated electrical energy commerce.

Victor Mapani, Chairperson of the SAPP Govt Committee mentioned: “The supply of sustainable energy might be distilled into three actions: technology, transmission and distribution. Whereas technology receives the lion’s share of consideration, the significance of delivering that energy to the place it’s wanted is equally essential. Entry to capital is the primary barrier going through builders of power transmission infrastructure. RTIFF dismantles this by enabling the personal sector to work alongside public sector utilities to roll out new transmission traces at scale. We’re delighted to have appointed CFM with their robust observe file within the African power sector to ascertain and handle this progressive facility and to assist our member states lastly safe a sustainable, resilient power provide.”

Engineer Stephen Dihwa, Coordination Centre Govt Director of SAPP mentioned: “RTIFF goals to mobilize the substantial funding capital required to spend money on new cross-border transmission infrastructure in addition to related in-country transmission infrastructure required for regional electrical energy buying and selling to allow SAPP members to extend and enhance buying and selling volumes, alleviate congestion on the present community, incorporate new and inexperienced regional energy technology assets, enhance reliability and create sufficient redundancy within the system. Interconnection throughout SAPP by way of strategic transmission corridors can save the SADC area an estimated US$37-42 billion in Internet Current Worth (NPV) by 2040. Now we have recognized eight high-priority transmission initiatives for RTIFF that may deliver financial advantages of US$4.3 billion in NPV.”

Amit Mohan, Head of Non-public Credit score at CFM mentioned: “The dearth of funding in grid infrastructure is likely one of the causes for ongoing blackouts in lots of components of Southern Africa. With roughly 180 million folks residing within the area uncovered to ongoing energy disruptions, common entry to dependable electrical energy will enhance folks’s well being, security, monetary inclusion, and financial actions. If we don’t spend money on grids as we speak, we are going to face gridlock tomorrow. That is much more urgent from an power transition perspective because the world must embrace inexperienced electrons on the grid. CFM is proud to be related to SAPP and appointed because the supervisor of RTIFF as there’s a deep must mobilize blended finance at scale and pace to allow the rollout of further grid infrastructure within the area.”

RTIFF’s fund structure will observe the construction of CFM’s flagship rising market blended finance services Local weather Investor One, targeted on renewable power technology and transmission, and Local weather Investor Two, targeted on water, sanitation, and ocean infrastructure. It’s going to comprise a USD 100 million goal “Growth Fund” to offer concessional capital and growth experience together with help on viability research, authorized and monetary structuring, planning and ESG compliance and a USD 1.2 billion goal “Building Fund” that may make direct investments via the supply of development finance and value-add experience for undertaking builds.

Distributed by APO Group on behalf of Local weather Fund Managers.

Media Enquiries:
Wilson Masango
E-mail: [email protected]
Phone: +263 778 552 650

Worldwide Media:
Sophie Blythe
E mail: [email protected]
Phone: +44 (0) 7765 801 762

South African Media:
Margot Gutteridge
E mail: [email protected]
Phone: +27 (0) 84 296 2689

About SAPP:
The Southern African Energy Pool (SAPP) was created in 1995 on the SADC summit in Kempton Park, South Africa, when member governments of SADC (excluding Mauritius) signed an Inter-Governmental Memorandum of Understanding for the formation of an electrical energy energy pool within the area. The ministers liable for power within the SADC area signed the Revised Inter-Governmental Memorandum of Understanding on 23 February 2006. The SAPP has twelve member international locations represented by their respective electrical energy utilities and a few personal utilities organized via SADC. SAPP members are electrical energy utilities in: Angola, Botswana, Democratic Republic of the Congo, Eswatini, Lesotho, Mozambique, Malawi, Namibia, South Africa, Tanzania, Zambia, and Zimbabwe. For extra data, go to www.SAPP.co.zw

About SADC:
The Southern African Growth Neighborhood (SADC) is a Regional Financial Neighborhood comprising 16 Member States; Angola, Botswana, Comoros, Democratic Republic of Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, United Republic Tanzania, Zambia and Zimbabwe. The mission of SADC is to advertise sustainable and equitable financial development and socio-economic growth via environment friendly, productive techniques, deeper cooperation and integration, good governance and sturdy peace and safety; in order that the area emerges as a aggressive and efficient participant in worldwide relations and the world economic system. For extra data, go to www.SADC.int.

About Local weather Fund Managers (CFM):
Local weather Fund Managers (CFM) is a number one climate-centric blended finance fund supervisor. It raises and deploys local weather finance funds in partnership at scale and tempo. By its award-winning mannequin, CFM has created a blueprint for a brand new technology of local weather financiers whose collective influence will help finish the local weather disaster. CFM at present manages two rising market infrastructure funds targeted on local weather change mitigation and adaptation: Local weather Investor One, a c. USD 1 billion fund targeted on renewable power, and Local weather Investor Two, a c. USD 1 billion fund targeted on water, sanitation, and ocean infrastructure. CFM is at present implementing additional blended finance initiatives within the inexperienced hydrogen, energy transmission and cities sectors targeted on growth, fairness, debt and assure monetary devices. Established in 2015, CFM is a three way partnership between the Dutch growth financial institution, FMO, and Sanlam InfraWorks, a part of the Sanlam Group of South Africa with places of work in The Hague, Cape City, Singapore, and Bogota. For extra data, see www.ClimateFundManagers.com


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