Norsad Capital Announces Successful Exit from Riverside Solar Power Station in Zimbabwe
Gaborone, 12 August 2024 – Norsad Capital, an impact investor and private credit provider with its principal operations in Southern Africa, is pleased to announce its successful exit from Riverside Solar Power Station, a 2.5MW solar power plant located outside Mutoko, Zimbabwe.
Norsad’s investment was pivotal in the development and success of Riverside Solar Power Station. The funding facilitated the construction and operationalization of the plant, significantly contributing to the regional electricity supply. The plant provides reliable power to the national grid, benefiting nearby Mutoko Town and surrounding areas. This is particularly impactful given the short supply of electricity in Southern Africa. For the year ending December 2023, Riverside Solar Power Station generated 4,560 MWhrs of electricity.
Zimbabwe has experienced frequent power shortages and load shedding, negatively impacting its economy and residents’ quality of life. These issues stem from outdated infrastructure, disruptions in imported electricity supply, and inadequate investment in the power sector. This was the first grid-connected solar power station in Zimbabwe, serving to demonstrate proof of concept, attractiveness and suitability of the country’s renewable energy sector for investment. During its construction, the station sourced goods and services from local suppliers, diversifying the area through improved facilities, roads, electrification, and job creation.
Reflecting on the successful exit, Alice Zulu, Investment Director at Norsad Capital, said, “As an impact investor, we are aware of the future risks posed by climate change and the need to incorporate climate-related considerations into our business practices. This project exemplifies our commitment to sustainable development and our purpose to build a better Africa.” She added, “We continue to encourage all our portfolio companies to implement resource efficiency measures and be more aware of climate risk.”
In alignment with Norsad’s commitment to fostering sustainable livelihoods and climate & clean energy, this investment supports the green transition by financing sustainable infrastructure to develop renewable energy. It targets UN SDGs 7, 9, and 13 by promoting the use of affordable and clean energy, fostering innovation in sustainable technologies, and improving energy access and infrastructure. Additionally, this investment takes critical steps to mitigate climate change, reduce greenhouse gas emissions, and promote resilience against climate impacts.
Riverside’s community development initiatives reached 1,000 beneficiaries through various projects, including electrifying schools and clinics, assisting the district hospital, repairing roads, and helping communities install electrical nodes. Additionally, in the 2023 reporting period, they initiated resource efficiency measures, including assisting the local authority in providing portable water. The solar power station contributes 2% to the national energy supply and 80% to the national renewable energy supply, with the energy produced estimated to power 200,000 households.
“Effective project monitoring is critical to mitigating risks and ensuring successful outcomes” says Allan Mutenda, the Chief Risk Officer at Norsad Capital. ” We implemented robust monitoring frameworks to track project progress, identify potential issues early, and ensure alignment with our strategic objectives. This proactive approach allowed us to adapt quickly to changing conditions and maintain our commitment to sustainable and impactful investments.”
About Norsad Capital
Norsad Capital is an impact investor providing tailor-made debt solutions to mid-market growth companies in Sub-Saharan Africa. With a track record spanning over 34 years, Norsad Capital has invested over USD 550 million in more than 170 companies across the continent.
For more information: https://www.norsadcapital.com
About Riverside Solar Power Station
Riverside Solar Power Station (RSPS) is a 2.5 megawatt (MW) solar power plant, representing the first stage of a 15MW-20 MW project located in the Mutoko district, about 140 kilometres northwest of Harare. The power station is 100% owned by Honde Hydro Power Consolidated (HHPC or Honde), which is in turn 100% owned by PGI Group, a UK-based company investing in the agriculture sector and renewable energy in Africa.
