British International Investment (BII), in collaboration with the UK’s development finance institution (DFI) and impact investor, has committed US $15M to Rift Valley Energy (RVE) to enhance access to sustainable energy in Tanzania.
This funding will support the development of new wind and hydropower projects, significantly improving the availability of sustainable and affordable electricity in rural Tanzania, where the electrification rate is notably low at 24%.
RVE, owned by Meridiam, is a key player in Tanzania’s renewable energy sector, operating the country’s sole wind farm, Mwenga Wind, and several run-of-river hydro projects. With BII’s investment, RVE aims to boost its renewable energy capacity by 7.6MW, potentially powering around 170,000 people annually and connecting 4,000 businesses and households to the electricity grid for the first time.
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Energy infrastructure
The expansion of renewable energy infrastructure is anticipated to have a profound impact on local industries, particularly in sectors such as tea and timber processing, water treatment, and pole treatment plants. This initiative is projected to generate approximately 1,800 jobs, thereby fostering economic growth and development in these rural regions. Additionally, the provision of clean energy is expected to improve educational opportunities, healthcare services, and overall industrial productivity, enhancing the quality of life for many residents.
Meridiam, an independent investment benefit corporation, acquired RVE in 2023 with the goal of expanding its renewable energy investments in East Africa. Beyond Tanzania, Meridiam has also invested in 100MW of wind energy projects in Kenya, underscoring its commitment to the region’s renewable energy sector.
BII has a long-standing history of supporting private sector growth in East Africa through innovative financing solutions and strategic partnerships. In 2023, BII allocated over US $355M across various sectors including clean energy, infrastructure, telecommunications, and financial services, reinforcing its role as a pivotal player in the region’s economic development.
