InfraCo Africa Ltd (InfraCo), a member of the Private Infrastructure Development Group (PIDG), has signed an agreement to sell its 25% stake in Golomoti JCM Solar Corporation Ltd to the Old Mutual Infrastructure Investment Trust Fund (Malawi). This trust is part of Old Mutual Investment Group’s Alternative Investments division. Old Mutual Malawi’s involvement will reduce currency exchange risk on the project and attract future investment into the country’s renewable energy sector.
After the signing, Ravi Dhanani, Senior Asset Manager for InfraCo at PIDG, expressed enthusiasm about collaborating with Old Mutual Malawi, noting their commitment to responsible investing and support for Malawi’s renewable energy sector as part of their diversified infrastructure portfolio. Dhanani emphasized that the transaction reflects PIDG’s project development model, InfraCo, aligning with their broader strategy to unlock new funding sources for sustainable infrastructure. He explained that PIDG uses public funding to de-risk projects, partnering with the private sector to develop them to high standards of health, safety, environmental, and social governance. The goal is then to sell stakes in profitable assets to reputable investors like Old Mutual Malawi, enabling the recycling of funding into new climate-resilient infrastructure projects across Africa.
Mphatso Kasalika, Acting Managing Director of Old Mutual Investment Group, stated that the completion of the transaction marks a significant milestone in the Group’s strategy, which includes a focus on investing in renewable energy as part of its responsible investment philosophy. He highlighted that the deal exemplifies a mutually beneficial strategy, offering investors strong returns from non-traditional investments while contributing to significant economic and social impact as Malawi seeks to expand and diversify its energy generation. Kasalika also expressed his satisfaction with InfraCo’s role in de-risking the initial phases of the project, making it viable and paving the way for Old Mutual’s Infrastructure Trust Fund to invest. He emphasized that the partnership with experienced players like JCM Power enables local participation in sustainable projects.
Commissioned in 2022, the 20MWac solar plant at Golomoti, Dedza District, includes a 5MW Battery Energy Storage System (BESS), the first grid-connected, utility-scale hybrid solar BESS in sub-Saharan Africa. Supported by Innovate UK’s Energy Catalyst and RINA, the BESS stabilizes the plant’s energy delivery to Malawi’s national grid. JCM Power, InfraCo, and PIDG have collaborated with the Pitala community, providing safe drinking water to over 2,000 people through nine boreholes. JCM’s CSR programs also include sustainable agriculture training, a community grain storage warehouse, and investments in education and healthcare. The company is also promoting agrivoltaics through chillies, bee-keeping, and sheep grazing under solar panels.
The signing supports Malawi’s strategic goals outlined in Malawi 2063 – Transforming our nation. The vision highlights the need for bankable infrastructure projects, particularly in renewable Independent Power Producers (IPPs), to attract private investment and address the increasing energy demands of Malawi and neighboring countries.
The deal is expected to close in August, with JCM Power continuing to manage the Golomoti Solar plant, while Old Mutual Malawi will appoint a director to the company’s board.
