Metier Financial Corporation has just announced a $25 million investment in Broadreach Energy. The funds are intended to provide clean energy to utility companies and small and medium-sized enterprises (SMEs) in sub-Saharan Africa.
Metier Private Equity International continues to invest in the power sector in Africa. The South African-based finance company has just announced a $25 million investment in the independent power producer (IPP) Broadreach Energy. This financing will enable the company to expand its activities in sub-Saharan Africa, including the supply of clean energy to commercial, industrial and small utility companies.
Specifically, the company will finance, build, operate and maintain autonomous solar systems on the roofs of companies. In exchange for the electricity supplied by Broadreach Energy, its client simply pays a monthly bill. A solar leasing model that is gaining popularity in Africa, favoured by the deficiencies of national electricity grids.
The African ambition
Broadreach Energy already provides solar photovoltaic energy and energy efficiency services to businesses in Rwanda, Namibia and South Africa. The company has developed, advised and invested in projects totalling more than 30 MW. According to Metier, its $25 million investment should enable Broadreach Energy to continue, develop and expand its renewable energy strategy for businesses in Africa.
“With Metier on board, we have the capacity to achieve our goal of building a leading African clean energy company,” enthuses Adam Bekker, Broadreach Energy’s CEO. Metier made its new investment through its Sustainable Capital Fund II. This fund targets investments that offer social and environmental benefits as well as financial returns.
Its investments are balanced between renewable energy projects (encompassing both grid-connected and distributed generation) and growth capital investments in other sectors, such as energy efficiency and the exploitation of resources such as water or waste management. The fund was recently endowed with 10 million euros by Proparco, the private sector arm of Agence Française de Développement (AFD).
Jean Marie Takouleu