Frontier Energy II (The Fund) is a renewable energy fund focused on developing, constructing and operating renewable energy generation projects, with a primary focus on hydroelectric, geothermal, wind, and solar opportunities in Kenya, Uganda, Rwanda, and Tanzania. The largest part of the investment will be used for construction purposes and the fund manager will oversee this critical phase to ensure that quality, time, budget, and ESG standards are met. The Fund’s portfolio is expected to provide more than 2,700 GWH/year of additional renewable energy, which roughly equates to meeting nearly 2.5 million households’ annual energy needs in the target countries.
Sub-Saharan Africa is home to 13% of the world’s population but also accounts for nearly 50% of the global share of people living without access to electricity. Because of the energy gap, companies across sub-Saharan Africa suffer from a competitive disadvantage, which leads to lost business opportunities and lower job growth. Investment in additional power capacity is required in order meet the demand, in particular, investment in renewable energy in order to ensure it is a significant part of the energy mix. SIFEM’s investment of US$10mn in Frontier II supports Africa’s energy security and economic development by adding capacity to the power grid and assists climate change mitigation through avoided CO2 emissions.
-ENDS-
For further information, please visit here.
Fund Size: US$200mn (target)
SIFEM investment: US$10mn
