Gaborone, Abidjan, Paris, October 22nd, 2024 – AFRIGREEN announces the financing of the 4 MW Sandveld Solar Park in Ghanzi, Botswana developed by Energy Systems Group and Sahara Renewables Group
AFRIGREEN Debt Impact Fund (“AFRIGREEN”), a leading investment fund, managed by RGREEN INVEST, and advised by Echosys Invest, focused on sustainable energy solutions and backed by prominent institutions including the European Investment Bank (EIB), the International Finance Corporation (IFC), BIO, FMO, Proparco, Société Générale, and BNP Paribas, is pleased to announce that it has entered into a USD 2.5 million loan with Sandveld Solar Park Ltd, a project company owned by Gaborone-based developers Energy Systems Group (“ESG”) and Sahara Renewables Group (“SRG”).
The project company has been awarded a 25-year power purchase agreement by Botswana Power Corporation through a competitive tender process. The long-term loan provided by AFRIGREEN will facilitate the construction and operational phases of a 4 MW solar plant adjacent to the city of Ghanzi, which will create jobs and stimulate local economic development.
The Ghanzi project aims to harness the abundant solar resources available in Botswana, providing clean, reliable energy to local communities in the Western part of the country while reducing reliance on coal-fired generation. This project aligns with the Botswana Government’s Vision 2036 roadmap to address the United Nations Sustainable Development Goals (SDGs). A key partner in this initiative is the national electricity company, Botswana Power Corporation, who is leading the way towards achievement of a green energy through signing of several power purchase agreement with independent power producers.
This initiative is a testament to the commitment of all parties involved to drive forward the transition to clean energy in Botswana. The Ghanzi project has benefitted from the support of many stakeholders including the Ministry of Energy, the Ministry of Finance, the Botswana Energy Regulation Authority, and BPC.
The collaboration between AFRIGREEN Debt Impact Fund SLP, New Sahara Ventures, Energy Systems Group, and Botswana Power Corporation showcases the power of partnership in addressing energy challenges and enhancing energy access in Africa.
“We are excited to support this groundbreaking initiative that aligns with our mission to promote sustainable energy solutions across Africa,” said Alexandre Gilles, AFRIGREEN fund advisor’s Managing Director. “This transaction marks our first investment in Botswana and more generally in Southern Africa. We have been very impressed by the quality of the development work done by our partners ESG and SRG and the robustness of the contractual framework implemented by BPC. We look forward to investing more funds in quality projects, in Botswana and in the greater region.”
“This is indeed a great milestone for our people, our partners and all our stakeholders who have worked tirelessly to reach this point of project development. The economic and environmental impact that the project will have on the Ghanzi township, and its surroundings promises to be a great one and we are excited to be part of this history making development”, said Felix Chavaphi, Managing Director of Energy Systems Group.