Good news for Rift Valley Energy (RVE). The company based in Mafinga in Tanzania and entirely owned by the French investment company Meridiam benefits from funding of 15 million dollars provided by British International Investment (BII), the financial arm of British diplomacy. The funding which could be increased to $25 million will support part of RVE’s investment and development plan for future renewable energy projects in Tanzania.
In this East African country, RVE has become an important player in the energy scene, investing in access to electricity in remote areas. The company builds and operates electricity networks. Unlike mini-grids and other metropolitan electricity networks powered by hybrid solar energy and which have become widespread in several sub-Saharan African countries in recent years, RVE builds small wind farms and hydroelectric developments.
Financing an installed capacity of 7 MW
In Mwenga, Mufindi district, RVE commissioned a 2.4 MW wind farm installed with financial support from the Trade and Development Bank (TDB), the commercial bank owned by the Member States of the Common Market of Eastern and Southern Africa (Comesa). The electricity produced by the wind farm supplies the RVE network in the Iringa region. Spanning 400 km, the mini-grid connects 4,500 homes and businesses in 42 villages.
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BII financing should support the development of an installed capacity of 7 MW, enough to supply 170,000 people with electricity and connect 4,000 businesses. “Approximately 1,800 new energy-related jobs will be created and the project is expected to avoid up to 17,000 tonnes of carbon emissions per year by the end of 2027”estimates the London-based development finance company.
In Mufindi district, RVE will install a second 2.5 MW wind farm. A vector of development in a region whose economy is dominated by agricultural activities, industrial and artisanal tea cultivation, small wood plantations, as well as various subsistence farming activities. These investments thus make it possible to electrify rural Tanzanian areas where the population has an access rate to electricity of only 24%. Nationally, this rate is estimated at 34%.
Jean Marie Takouleu
