The French fund is betting on clean energy infrastructure development in sub-Saharan Africa, which has one of the lowest electrification rates in the world.
Mirova Gigaton Fund has provided $20m (€18.5m) in long term debt financing to ManoCap Energy, a Ghana-based renewable energy firm. The Mirova Gigaton Fund is owned by French asset manager Mirova, which manages €31.1bn in assets.
ManoCap, which was founded in 2019, will use the extra funding to expand in its key markets, Ghana and Sierra Leone, and further develop renewable energy solutions in West and sub-Saharan Africa.
With 220 million people unable to access power, West Africa has one of the lowest electrification rates in the world, according to a 2023 World Bank report. At the same time, those who are on the grid are having to pay one of the highest electricity costs in sub-Saharan Africa.
This double whammy has led to increased demand for renewable energy projects across the region. According to a 2023 research report by consultancy firm PwC, West Africa has a potential renewable energy capacity of 2,000 gigawatts, which could cover the basic energy needs of its population.
“This fourth Mirova Gigaton’s investment is perfectly in line with the funds’ core strategy which aims to scale up support for high-impact clean energy projects in emerging markets,” said John Kimotho, investment director at Mirova. Kimotho added the investment was also a “crucial milestone for us in our ongoing efforts to increase our impact in Sub-Saharan Africa where the energy needs are most acutely felt”.
Environmental, social impact
The investment by Mirova Gigaton Fund will allow ManoCap Energy to continue building its commercial and industrial (C&I) scale solar business in West Africa, while expanding its business into neighbouring countries, including Nigeria, Ivory Coast, Guinea, Liberia and Togo.
ManoCap specialises in replacing diesel generators with clean energy systems, including solar and battery storage hybrid energy installations for commercial and industrial clients. ManoCap Energy also generates social impacts by providing mostly SMEs in low-income African countries with improved energy access.
ManoCap is backed by Evolution II, whose investors include a wide range of national development banks from Africa and Europe as well as Morgan Stanley Alternative Investment Partners, the Swiss Investment Fund for Emerging Markets managed by Obviam and a US-based healthcare system investor.
Tom Cairnes, chief executive officer at ManoCap Energy, highlighted the “rapid growth in the C&I sector in the region over the last few years”, adding the extra money will help the firm to meet “significant short-term demand that exists from our pipeline of customers”.
As previously reported by Impact Investor, last month Mirova announced it was backing a a large-scale ecosystem project in South Africa, alongside Rubicon Carbon and GenZero.
