The Emerging Africa Infrastructure Fund (EAIF) has committed a senior secured loan facility of US$30 million to AXIAN Energy.
EAIF is a company under the Private Infrastructure Development Group (PIDG).
This investment is part of AXIAN Energy’s expansion plan.
Its aim is to provide over 460 Megawatt (MW) of utility-scale renewable energy generation capacity across Africa in the next decade.
Initially, it focused on oil and gas distribution. In 2017, AXIAN Energy strategically shifted towards renewable energy.
EAIF’s support strengthens AXIAN’s pursuit of acquiring, developing, and executing greenfield utility-scale solar projects across various African regions.
The Project Development Facility of EAIF addresses challenges in developing greenfield projects in emerging markets.
As a result, it ensures their bankability.
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EAIF’s Role in AXIAN Energy’s Vision
The investment aligns with EAIF’s goal to improve energy access. It benefits AXIAN Energy Group’s initiatives in rural areas.
Benjamin Memmi, CEO at AXIAN Energy, stated,
“This facility marks a pivotal moment in our journey toward sustainable development and energy inclusion across Africa.
“The infusion of EAIF funds will not only propel our transition to renewable energy.
“Still, it will also enhance our unwavering dedication to delivering clean and accessible power to communities throughout the continent.
“This financial commitment from EAIF catalyzes our growth and underscores AXIAN Group’s steadfast commitment.
“As a result, it is making a positive impact and contributing to the socio-economic development of Africa.
“This is through accessible and sustainable energy solutions according to international environmental standards.
“EAIF will also play an important role in our deployment through project finance.”
Moreover, Tidiane Doucoure, Director at Ninety One, the fund manager of EAIF, emphasized the importance of supporting projects like AXIAN Energy.
He added that they are crucial in addressing challenges in emerging markets, particularly in the current inflationary environment.