Seeds of Opportunity: The African Growth Series
June 2024 | Issue 1
In this week's issue, you will learn more about:
- AFRICA OPPORTUNITY: Alcazar’s Energy Fund in African Sustainable Development
- AFRICA OPPORTUNITY: Mozambique's Data Centre Boom and the 5.3 Billion Rand Investment Push
- AFRICA TREND: Sibanye-Stillwater is the Market Leader in Private Energy Procurement in South Africa
AFRICA OPPORTUNITY: Alcazar’s Energy Fund in African Sustainable Development
Alcazar Energy Partners (AEP) is a renewable energy fund based in Luxembourg. It focuses on financially supporting sustainable development projects in underserved emerging markets. The company started its funding journey in 2014 with AEP-I. This immensely successful fund catalysed the development of the most extensive independent renewable energy project portfolio in the Middle East and North Africa region.
On 21 May 2024, the AEP-II fund closed after securing USD 490 million from donors, including the IFC - International Finance Corporation, the European Investment Bank (EIB), a German investment corporation called DEG Deutsche Investitions und Entwicklungsgesellschaft mbH, and the OeEB Oesterreichische Entwicklungsbank AG - The Development Bank of Austria to name a few. These funds will be used to further the work of AEP in emerging markets by supporting the goal of creating 1.6 gigawatts of clean energy projects, in turn supporting long-term employment opportunities and sustainable energy development.
AFRICA OPPORTUNITY: Mozambique's Data Centre Boom and the 5.3 Billion Rand Investment Push
Mozambique's digital landscape is rapidly evolving, with Raxio Data Centres, backed by global investors, investing ZAR 5.3 billion to expand its data centre network across Africa. This initiative includes a USD 120 million equity fund and a USD 110 million debt package from Proparco and the Emerging Africa Infrastructure Fund. The data centre sector in Africa is set to grow exponentially, with a current global share of just 1%. This presents a massive opportunity for local and international businesses to tap into the continent's burgeoning digital economy.
With the rising demand for better connectivity, artificial intelligence capability, and storage, Mozambique's new data centre will play a pivotal role in meeting these needs. This investment will improve the country's digital infrastructure, create jobs, and attract further investment in the technology sector.
AFRICA TREND: Sibanye-Stillwater is the Market Leader in Private Energy Procurement in South Africa
Sibanye-Stillwater, a precious metals mining company in South Africa, is the country's market leader in private energy procurement. Two wind farms and one solar energy plant represent the 267MW in renewable energy projects underway.
Sibanye-Stillwater’s CEO, Neal Froneman, stated that these projects represent a significant step towards achieving carbon neutrality by 2040. With these three projects in place, Sibanye’s carbon emissions are reduced by over 15%. In addition to this decarbonisation, these actions also significantly reduce pressure on ESKOM’s electricity capacity, contributing positively to electricity security in South Africa and helping to alleviate the energy crisis. To this end, Sibanye has partnered with ESKOM through a wheeling agreement, meaning that these renewable energy projects will transmit the power they produce to Sibanye’s operations using the existing transmission infrastructure from ESKOM.
With a commitment to renewable energy, Sibanye-Stillwater sets a powerful example for responsible corporate stewardship.
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
