Gaborone, Botswana, December 20, 2023 —To support Botswana's efforts to transition to a more sustainable and affordable energy mix, IFC today announced an investment to finance a 60 MWp solar project developed by Scatec, a leading global renewable energy developer.
This will be the largest solar project in Botswana and help the country meet its target of generating at least half its power from renewable sources by 2036. It is also the country's first utility-scale renewable independent power producer (IPP) and marks IFC's first infrastructure investment in Botswana.
The $31.4 million debt package consists of an innovative dual currency financing with IFC providing $16.4 million and mobilizing up to $15 million equivalent in Botswana Pula from First National Bank of Botswana, acting through its Rand Merchant Bank division.
The investment will finance the development of a solar photovoltaic (PV) renewable energy plant as the first phase of the Mmadinare Solar Complex. The complex is located close to the town of Selebi-Phikwe, 400 kilometers northeast of the capital Gaborone. This project will involve the development, design, financing, construction, operation, and maintenance of the plant, as well as the necessary connection infrastructure.
When complete, the plant's power will be supplied to the national utility, Botswana Power Corporation (BPC), supporting electrification in the country's urban and rural areas. Botswana's government has set a national electricity access target of 100 percent by 2030.
"As we reach another milestone in our renewable energy journey in Botswana, we are now looking forward to starting construction of the largest solar project in the country. We would like to thank our financing partners, including IFC, for their commitment and contribution to the project," said Scatec CEO Terje Pilskog.
"IFC's investment in Botswana's first utility-scale renewable IPP will help the country achieve its ambitious renewable energy targets," said Nuzhat Anwar, IFC's Senior Country Officer for Botswana. "Through our partnership with Scatec, we are not only helping address Botswana's energy needs but also promoting sustainable development and energy diversification."
Botswana is heavily dependent on coal and emergency backup diesel power plants for electricity, which are nevertheless insufficient to meet the country's growing power needs. In fiscal year 2022, the Botswana Power Corporation electricity imported 45 percent of the country's consumption, mostly from neighboring South Africa.
Scatec is a long-standing IFC partner. IFC invested in Scatec's 40 MW Mocuba Solar Power Plant, Mozambique's first utility scale solar PV plant, in 2017. More recently, IFC provided an anchor investment of $21 million to Scatec's green bond issuance.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
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