TANZANIA – British International Investment (BII) has announced a significant investment agreement with Meridiam, aiming to bolster Tanzania’s hydropower and wind power capacity.
The agreement commits US$15 million to the Meridiam-owned Rift Valley Energy (RVE), with a potential increase to US$25 million, to support the installation of an additional 7.6MW of renewable energy for Tanzania’s national grid.
This investment is part of a broader strategy to expand sustainable energy access in the region. The hydropower projects, alongside new wind energy installations, are set to provide reliable electricity to approximately 170,000 people annually and connect 4,000 businesses and households to the grid for the first time.
The initiative is expected to generate 1,800 new jobs and reduce carbon emissions by up to 17,000 tonnes annually by 2027.
“Millions of people in Tanzania do not have access to energy and this greatly impacts their ability to access essential services and opportunities,” said Nick O’Donohoe, BII’s Chief Executive Officer.
“This agreement with Meridiam to support Rift Valley Energy will improve the lives of thousands of people in rural Tanzania as the energy it will provide will empower many sectors which will help to enhance educational opportunities, healthcare services, job creation, and industrial productivity.”
Rift Valley Energy, a Tanzanian renewable energy infrastructure company, is wholly owned by Meridiam.
Since its acquisition in 2023, Meridiam has been focused on expanding RVE’s generation assets, which currently include a 30MW portfolio of renewable energy projects and the operation of two rural distribution networks spanning 460 kilometers in the Southern Highlands of Tanzania.
“Rift Valley Energy is an investment which is true to Meridiam’s mandate and purpose, and we are pleased to partner with BII to grow the renewable energy projects being developed by the company,” Mathieu Peller, Meridiam’s Deputy CEO and Africa Head said.
“This facility affirms our confidence in Tanzania as a market, where the Government has clear and ambitious economic development plans which we look forward to supporting through sustainable investment.”
The national electrification rate in Tanzania is currently 37%, with rural areas lagging at just 24%.
The hydropower projects funded by BII and Meridiam aim to address this disparity by providing clean and affordable power to local industries, including factories processing tea, veneer, timber, and plants for water and pole treatment.
BII’s longstanding commitment to East Africa is underscored by its current US$1.4 billion portfolio in the region, which supports private sector growth through innovative financing solutions and strategic partnerships.
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