BII invests in $15m renewable energy platform in Tanzania.

By Oliver Townsend Jun 21, 2024
BII commits $15m to renewable energy platform in Tanzania.jpegOrginal image from: https://impact-investor.com/bii-commits-15m-to-renewable-energy-platform-in-tanzania/

Investing in renewable energy is crucial for sustainable development and economic growth, especially in regions where access to electricity is limited. British International Investment (BII) recently committed $15m to Rift Valley Energy (RVE), a Tanzanian renewable energy platform. This investment aims to bolster the national grid’s supply of sustainable and affordable electricity in low-income areas of rural Tanzania. This article will delve into the significance of this investment and its potential impact on the region.

The Significance of BII’s Investment

BII’s commitment of $15m, with a possibility to increase it to $25m, to RVE marks a significant step towards addressing the energy challenges faced by millions of people in Tanzania. The lack of access to energy not only hinders everyday activities but also limits opportunities for education, healthcare, job creation, and industrial productivity. By investing in renewable energy, BII is not only providing electricity but also empowering communities and sectors that are essential for sustainable development.

Potential Impact on Rural Tanzania

With only 37% of Tanzania having access to electricity, and as low as 24% in rural areas, the funding from BII to RVE is expected to have a substantial impact. RVE anticipates providing energy to approximately 170,000 people annually and connecting 4,000 businesses and households to the grid for the first time. Additionally, the emergence of clean and affordable power could create around 1,800 jobs in local industries, further contributing to economic growth and development in the region.

Supporting Sustainable Investment in Tanzania

Meridiam, the asset manager that acquired RVE, views the commitment from BII as a vote of confidence in Tanzania as a market with clear economic development plans. By supporting sustainable investment in the country, BII and Meridiam are aligning with the government’s ambitious goals and contributing to the overall growth and well-being of Tanzanian communities.

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