British International Investment (BII), the UK’s development finance institution and impact investor, has signed an agreement to provide $15 million, with the potential to increase to $25 million, to renewable energy platform Rift Valley Energy (RVE). RVE is owned and managed by Meridiam. The funding will support RVE’s ambitious investment and development plans for future renewable energy projects in Tanzania.
This support from BII will finance and install new wind and hydropower capacities, increasing the national grid’s supply of sustainable and affordable electricity to businesses and communities in low-income rural areas of Tanzania. These new projects will complement RVE’s existing run-of-river hydros and Tanzania’s only operational wind farm, Mwenga Wind.
RVE, based in Tanzania, is a renewable energy infrastructure development company wholly owned by Meridiam, an independent investment Benefit Corporation and asset manager specializing in sustainable public infrastructure. Meridiam acquired RVE in 2023 to expand its generation assets.
RVE operates and is developing a portfolio of 30MW of renewable energy generation alongside its subsidiary Mwenga Power Services, which runs two rural distribution networks covering 460 km. These are located in Tanzania’s Southern Highlands. Beyond RVE, Meridiam recently invested in 100MW of wind assets in Kenya, reinforcing its regional renewable energy footprint. BII has partnered with Meridiam for several years, investing in past and current funds that have successfully developed major greenfield and brownfield infrastructure projects in Africa.
Tanzania’s national electrification rate stands at 37 percent and drops to 24 percent in rural areas. With BII’s financing, RVE is expected to support an additional 7.6MW of new renewable energy assets, providing power to approximately 170,000 people annually and connecting 4,000 businesses and households to the grid for the first time. The provision of clean and affordable power to local industries, including factories processing tea, veneer, timber, as well as water and pole treatment plants, is anticipated to create 1,800 jobs.
During his week-long visit to East Africa, including Tanzania, BII’s Chief Executive Officer, Nick O’Donohoe, said, “Millions of people in Tanzania do not have access to energy, significantly impacting their ability to access essential services and opportunities. This agreement with Meridiam to support Rift Valley Energy will improve the lives of thousands in rural Tanzania by empowering many sectors, enhancing educational opportunities, healthcare services, job creation, and industrial productivity.”
Meridiam’s Deputy CEO and Africa Head, Mathieu Peller, added, “Rift Valley Energy is an investment true to Meridiam’s mandate and purpose. We are pleased to partner with BII to expand the renewable energy projects being developed by the company. This facility affirms our confidence in Tanzania as a market with clear and ambitious economic development plans, which we look forward to supporting through sustainable investment.”
