The Emerging Africa Infrastructure Fund (EAIF), a company under the Private Infrastructure Development Group (PIDG), has committed a senior secured loan facility of US$30 million to AXIAN Energy.
This investment is part of AXIAN Energy’s expansion plan, aiming to provide over 460 Megawatt (MW) of utility-scale renewable energy generation capacity across Africa in the next decade. Initially focused on oil and gas distribution, AXIAN Energy has strategically shifted towards renewable energy since 2017.
The EAIF’s support enhances AXIAN’s efforts to acquire, develop, and execute greenfield utility-scale solar projects in various African regions. EAIF’s Project Development Facility addresses challenges in developing greenfield projects in emerging markets, ensuring their bankability and attractiveness.
The investment aligns with EAIF’s goal to improve energy access, benefitting AXIAN Energy Group’s initiatives in rural areas with limited power access.
Benjamin Memmi, CEO at AXIAN Energy, said, “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 bolster our unwavering dedication to delivering clean and accessible power to communities throughout the continent.
This financial commitment from EAIF catalyzes our growth, underscoring AXIAN Group’s steadfast commitment to making a positive impact and contributing to the socio-economic development of Africa through accessible and sustainable energy solutions according to international environmental standards. EAIF will also play a pivotal role in our deployment through project finance.”
Tidiane Doucoure, Director at Ninety One, the fund manager of EAIF, emphasizes the importance of supporting projects like AXIAN Energy in addressing challenges in emerging markets, particularly in the current inflationary environment.