[Johannesburg (South Africa) November 2024] – In a strategic expansion move, Sturdee Energy has partnered with Frans Indongo Group to raise a project finance facility of N$ 500 000 000 from RMB Namibia as the Lead Arranger on two operational solar projects in Namibia, Mariental and Kokerboom, each with a capacity of 10 MW.
This pivotal transaction secures additional operational capacity for Sturdee Energy accelerating the scaling of its Namibian operations and enhancing its stature as a major Independent Power Producer (IPP) in Namibia and the region. It simultaneously marks a material investment by the Frans Indongo Group into the Namibian renewable energy through its energy business, Indongo Energy.
RMB is excited to partner with Sturdee Energy and the Frans Indongo Group in their respective missions to build out a globally competitive renewable energy infrastructure landscape in Namibia and the Southern African region. By connecting these sustainable investment opportunities to bespoke funding structures that attract diversified strategic capital pools, RMB is pleased to optimize investor returns and deliver Green assets to Namibia’s capital markets. RMB leveraged the greater FirstRand Namibia ecosystem to pull capital from other sources beyond the Commercial Banking Industry, with the Government Institutions Pension Fund’s participation in the transaction through Ashburton Investment Managers Namibia.
“By leveraging our market leading bespoke solutioning and ability to crowd in efficient capital pools, RMB is pleased to deliver attractive sustainable returns to like-minded investors and the Namibia society at large. Our commitment to Green energy is anchored in our evergreen purpose of creating a globally competitive Namibian economy, leveraging all its natural resources to create value and impact for all stakeholders. This transaction evidences our resolve to deepen the Namibian capital markets, demonstrates our unmatched ability to deliver locally baked solutions to domestic and international investors and the leading role we continue to play towards delivering ESG and Blended Finance solutions.” explains Leonard Hamunyela, Infrastructure Dealmaker at RMB.
Partnership and Expansion
Sturdee Energy is particularly enthusiastic about the partnership with the Frans Indongo Group, viewing it as a cornerstone for future growth and collaboration. “This partnership not only expands our operational capabilities but also aligns with our strategic goals to deepen our engagement in Namibia and enhance our contributions to the region’s energy needs,” stated James White, Executive Director of Sturdee Energy.
Jeremy George the Chief Executive Officer of the Frans Indongo Group stated that, “Working with Sturdee as an investment and expert technical partner is aligned with the Frans Indongo Group’s strategy, through Indongo Energy to invest in Namibia and its energy sector as being one of the catalysts of economic growth of Namibia, aligning with Frans Indongo Group’s ethos of Shape Today, Own Tomorrow.”
This partnership underlines Sturdee’s strategy to develop, own, operate, and acquire high-quality renewable energy assets, thus bolstering its footprint in the Southern African Development Community (SADC) region.
Alignment with Business Strategy
The transaction demonstrates Sturdee’s broad skillset of being able to develop, own, operate and raise finance for renewable projects whether they are greenfield projects, under construction or in operations. They are excited about the immediate operational and scale benefits these operational projects will add to their platform while they continue to roll out their development pipeline. This not only solidifies Sturdee Energy’s operational capacity, but also provides an immediate financial uplift, enabling the company to expand without the typical risks associated with new construction projects.
Key Project Information
The existing installations, operational since December 2018, are equipped with tier 1 utility scale solar equipment, including Jinko panels, and single axis trackers.
They have long term power purchase agreements with NamPower, one of Africa’s most respected energy utilities.
In 2025 the projects will:
1. Generate an estimate of 59,320 MWh of clean energy [MWh per year].
2. Achieve carbon emissions savings of 56,354 tCO2e.
Strategic Growth in a High-Demand Market
With the positive outlook on Namibia’s economy and the rising demand for renewable energy, these acquisitions are timely. This strategic move aligns with the region’s growing need for sustainable energy solutions. Moreover, the ability to provide low-cost energy is poised to boost other industries, thereby enhancing economic growth in the country.
This move complements Sturdee Energy’s existing Namibian investment in the Rosh Pinah Solar project, forming the foundation for a local platform that enhances operational efficiencies and market presence. This expansion is further strengthened by the partnership with the Frans Indongo Group, marking their first investment into the renewable energy sector.
Sturdee Energy’s Executive Director, Andrew Johnson, commented on the positive economic prospects. “With a highly professional utility in NamPower and an effective regulator in the ECB, Namibia remains a priority market for us. We are excited about the potential for further investments in both the public and private sectors here.”
