The project

In June 2022, STOA invested USD 35 million in Serengeti Energy, a Nairobi-based independent power producer active in the sub-Saharan region and specialised in developing, constructing and operating small to medium sized renewable energy plants up to 50MW capacity in Sub-Sahara Africa.

This investment is part of a USD 80 million capital round contributed alongside Proparco, the private sector arm of the French Development Agency, and Swedfund, the Swedish development finance agency.

Through this investment, STOA, Proparco and Swedfund will be joining KfW, Norfund and the Nordic Development Fund, already shareholders of the company.

This latest capital will accelerate the company’s ambitious growth plan to have a total of 300MW of capacity in operation by the end of the decade.

What’s at stake

Supporting the production of and access to sustainable energy

Given that limited access and unreliable electricity is identified by the World Bank as one of the main impediments to business development in Sub-Saharan Africa, the investment in Serengeti Energy will enable STOA to contribute directly to the economic development of Sub-Saharan African countries without increasing their public spending.

To date, Serengeti Energy’s portfolio of assets includes seven operating plants located in South Africa, Uganda, and Rwanda. In the near future, two additional projects currently under construction in Malawi and Sierra Leone will bring the total installed capacity to over 70 MW.

Serengeti’s approach is to focus on small to medium sized renewable energy plants up to 50MW capacity in Sub-Sahara Africa. This strategy ensures an efficient answer to Africa’s electrification challenges, especially in countries with weak power grids, unable to intake significant amounts of new capacity before major investments are made.

A transformational project

This transaction fits perfectly with STOA commitment to dedicate at least 50% of its investments in Africa and towards projects with climate benefits.

Serengeti Energy will also contribute to STOA goals to finance an installed capacity of more than 1 500 megawatts and provide access to electricity to the equivalent of more than 4 million people through its direct financings before the end of 2024.

Expected Results

• 300 MW of capacity deployed by 2030
• 200,000 tons. CO2 eq avoided each year [1]

Overall impact score of the project : 2,4 / 3

[1] Emissions calculated using the AFD’s carbon balance method, based on total installed capacity and projected estimates over the life of the project.

“This is an exciting time for the Serengeti Energy team. The investment marks a new era for the company. The capital provided by our new investors will enable the company to develop and build over 100MW of new renewable energy capacity. The expansion will take place in both our existing and new markets. This means that we will now be able to continue to build the company to the benefit of our customers, communities and shareholders.”

Chris Bale, Serengeti Energy CEO