Private equity investment in renewable power generation in Africa
responsAbility-managed energy company starts construction of Rwandan hydropower plant
Zurich, 22 June 2017 — A responsAbility-managed company designed to finance, build, own and operate renewable energy projects in Sub-Saharan Africa has started construction on a 2.7 MW hydropower plant in the Republic of Rwanda. The run-of-the-river plant is located on the Mukungwa River, in the Northern Province close to the city of Musanze. It is expected to be fully operational by the end of 2018.
The development of the hydropower plant was started in late 2013 but came to a halt due to financing constraints. The responsAbility-managed renewable energy company joined the co-development of the hydropower plant in the second quarter of 2014 together with local developer DC Hydropower and co-developer/investor Frontier Investment Management from Denmark.
Dr. Johannes Feist who represents KfW and the German Federal Ministry for Economic Cooperation and Development (BMZ) as majority shareholder of the responsAbility-managed renewable energy company, underlined: “Ensuring the supply of energy across the whole of Sub-Saharan Africa is a key development goal. We are pleased that, by starting construction on the first green-field power plant, we are getting one step closer to achieving this important objective.”
Joseph Nganga, Director Renewable Energy Africa at responsibility Investments, added: “As with all of responsAbility’s investment activities our renewable energy company aims at generating market returns for investors while producing a positive impact on the livelihoods and local economies. Apart from improving access to electricity in rural Rwanda, the hydropower plant is providing employment opportunities both during the construction period and once the plant will be finished.”
The Republic of Rwanda ranks among the lowest in terms of electricity consumption per capita in the East Africa region. Once completed, the hydropower plant will produce 20 gigawatt hours or 2-3% of the total electricity produced in the country. By helping to stabilize the local grid, it will ensure an improved power supply to local businesses and industries.
responsAbility Investments AG
Ulli Janett, Media Relations
+41 44 403 06 33
ulli.janett [at] responsAbility.com
About responsAbility Investments AG (responsAbility.com)
responsAbility Investments AG is a leading asset manager in the field of development investments that offers professionally managed investment solutions to private, institutional and public investors. The company supplies debt and equity financing to firms in emerging economies and developing countries.
responsAbility currently has USD 3.1 billion of assets under management invested in over 550 companies in 97 countries. Founded in 2003, the company is headquartered in Zurich and has local offices in Bangkok, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. Its shareholders include a number of reputable institutions in the Swiss financial market and its own employees. responsAbility is regulated by the Swiss Financial Market Supervisory Authority FINMA.