$1.3 B fund set up for transmission lines in Southern Africa
The fund aims to link the countries in the region with power transmission lines.
Image for illustration purposes.
Zimbabwe, Harare: The Southern African Power Pool (SAPP) has partnered with investment advisers Climate Fund Managers (CFM) to set up a $1.3 billion fund to build high-voltage transmission lines which could link countries in the region. According to SAPP and CFM, an initial $20 million has been committed by the organisations for the newly established Regional Transmission Infrastructure Financing Facility (RTIFF).
“Access to capital is the number one barrier facing developers of energy transmission infrastructure across SAPP’s members. RTIFF dismantles this by enabling the private sector to work alongside public sector utilities to roll out new transmission lines at scale,” commented Victor Mapani, chairperson of the SAPP executive committee.
The facility could have a lifespan of 20-25 years and is expected to reach a final close of $1.3 billion within two years. Resources for the fund will be raised from public and private sector investors locally and internationally. A push towards renewable energy has shown the extent of the shortage of high-voltage connections across the region where projects, commonly located in remote areas, were unable to be connected to national grids.
Source: APA News
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