GuarantCo facilitates $27m guarantee for renewable projects in Southern Africa

In a landmark move towards fostering renewable energy initiatives in Southern Africa, GuarantCo, renowned for its robust credit ratings (Moody’s A1 and Fitch AA-), has finalized a pivotal $27 million guarantee agreement with Africa GreenCo. This innovative venture aims to bolster Independent Power Projects (IPPs), enabling them to deliver sustainable power solutions to both private off-takers and the South Africa Power Pool (SAPP) market.

The guarantee, anticipated to catalyze up to $270 million in private sector investment, underscores GuarantCo’s commitment to advancing climate action, aligning seamlessly with the PIDG 2023 – 2030 Strategy. Leveraging its high credit standings, GuarantCo’s involvement is poised to instill confidence among IPPs and their financiers, paving the way for the realization of renewable energy projects ranging from 200MW to 300MW. These projects not only promise enhanced electricity access but also contribute significantly to reducing greenhouse gas emissions, aligning with Sustainable Development Goals 7.1 and 13.

Notably, this collaboration marks PIDG’s second engagement with Africa GreenCo, following an initial support initiative in 2020. InfraCo Africa’s prior investment of $5.5 million played a pivotal role in bolstering GreenCo’s emergence as Zambia’s premier renewable energy buyer and services provider.