MTI Investment Secures NOPEF Funding for Solar Energy Feasibility Study in Zanzibar
DANDERYD, SWEDEN - MTI Investment SE (ticker "MTI") is excited to announce its successful qualification for an interest-free conditional loan of up to EUR 45 000 (approx. SEK 531 000) from NOPEF (Nordic Project Fund), in an application with co-applicant Sunergetics AS. The funding will support a comprehensive feasibility study on solar energy in Zanzibar, enabling MTI and Sunergetics to make informed decisions regarding future business setup and investment in the region.
The objectives of the feasibility study are as follows:
- Identify unserved and underserved markets and segments for commercial, industrial, and village mini grids in Zanzibar, Tanzania.
- Explore alternatives for e-waste management in the region.
- Understand the business and regulatory environment for establishing PAY-AS-YOU-GO models under the SUNAMI Solar company in Zanzibar, Tanzania.
- Develop and recommend a high-level business plan for the internationalization of SUNAMI Solar in Zanzibar, Tanzania.
The study will involve various activities, including demographic analysis, competitive assessments, pricing analysis, household surveys, interviews on solar products, stakeholder interviews, regulatory framework analysis, and business plan preparation. The disbursed conditional loan is converted into a grant, wholly or partially, when a final project report and cost reporting have been approved.
In Sub-Saharan Africa, approximately 120 million households lack access to adequate electricity, with projections indicating that 60 million households will still lack access by 2030, posing a challenge to achieving universal sustainable electricity access outlined in SDG 7. Tanzania, specifically, has faced electricity generation challenges due to hydroelectric power relying on rainfall, resulting in water shortages and reduced electricity generation.
Sunami Solar, controlled through Sunergetics AS (Norway) and MTI's Techbridge (Kenya), has successfully pioneered the commercial demonstration of its energy accessibility solution in Kenya and Uganda. The company has provided affordable PAY-AS-YOU-GO models to underserved off-grid households, yielding positive results and impact. Building on this success, Sunami Solar aims to scale up its models in the region, starting with Tanzania and, more specifically, Zanzibar. According to a study by the World Bank Group, only 50% of the Zanzibar population currently has access to power. Despite being a prominent tourist destination in Africa, Zanzibar continues to face acute power shortages and has several underserved villages. Solar power presents an ideal solution to connect these rural areas with limited prospects of obtaining mains power, promoting resilience and sustainability. Sunami Solar's commercial target is to serve commercial clients such as hotels while providing mini grids to underserved villages.
One of the larger shareholders behind Sunergetics is the Norwegian solar entrepreneur Alf Bjørseth, who has previously founded REC, one of the world leaders in the solar industry, and subsequently Scatec, a leading renewable power producer, delivering affordable and clean energy worldwide. Alf Bjørseth comments on the decision by NOPEF:
"The decision by NOPEF is a clear recognition of the tremendous potential that solar energy holds for the East Africa region and for Africa as a whole. Zanzibar, with its abundant sunshine, offers a fertile ground for harnessing clean and sustainable power, uplifting communities, and paving the way for a brighter future. The collaboration between MTI Investment and Sunergetics exemplifies the power of partnerships in driving renewable energy solutions forward. By combining Nordic and East African expertise, resources, and a shared vision, they are embarking on a transformative journey towards a greener and more prosperous Africa.
As a solar entrepreneur, I am inspired by the strides being made in this sector, and it fills me with optimism for what lies ahead. The potential for solar energy in Zanzibar and across Africa is immense, and by investing in feasibility studies and fostering collaborations, we lay the foundation for a sustainable energy revolution that can power communities, create jobs, and uplift lives. Let us continue to embrace the sun's energy and unlock the boundless opportunities it brings."
To make solar energy solutions more accessible, we wish to establish a business operations model with a focus on scaling up to larger solar systems in the Commercial & Industrial (C&I) segment, village mini-grids, and other institutions in Zanzibar. In addition to the current PAYGo model, the company will offer payment models such as EPC, EPCF/PPA, BOT, and operating leases for larger solar systems ranging from kilowatts to megawatts.
The feasibility study for providing solar energy solutions in Zanzibar, Tanzania, will commence with an economic and market analysis. MTI plans to involve other group companies, such as Techbridge in Kenya and Ecohomes in Tanzania, leveraging Ecohomes' expertise in project management and construction.
MTI believes its affordable models will drive success by not only providing access to electricity, a necessity, but also enabling individuals to establish self-sustainable businesses, contributing to the region's economic prosperity. Furthermore, this transition away from fuel-based lamps will promote healthier living and a cleaner, greener environment.
About NOPEF: NOPEF aims to promote the green transition toward a climate-neutral and sustainable society by supporting projects with a positive environmental impact. Supported projects foster Nordic collaboration and partnership between actors from two or more Nordic countries, involve Nordic subcontractors, financiers, organizations, and other partners, and create socio-economic benefits in the Nordic countries through increased employment, knowledge sharing, and the development of sustainable business models. Projects aligned with the goals of the Nordic Vision 2030 receive priority consideration. NOPEF is managed by the Nordic Environment Finance Corporation (Nefco), is funded by the Nordic Council of Ministers, and has a zero-tolerance policy towards corruption
For more information, please visit www.nopef.com.
For additional information
Pontus Engström, CEO, MTI Investment SE
+46 70 716 55 38
About MTI Investment SE
MTI Investment SE is a Nordic investment and venture-building company, founded in 2014 by a team with extensive experience in emerging markets to invest in East African small and medium-sized enterprises ("SMEs") with high value-adding potential. The Company is active in the expansive East African market, and by being a long-term and active owner, MTI Investment helps its portfolio companies grow faster and become more profitable. The Company invests primarily in innovative and scalable companies that have the potential for a significant positive impact on society.
The MTI Investment shares (MTI) are traded on the Nasdaq First North Growth Market.
Certified Adviser to MTI Investment is Mangold Fondkommission AB.
Read more on: www.mti-investment.com
Om MTI Investment
MTI Investment SE is a Nordic investment and venture building company, founded in 2014 by a team with extensive experience from emerging markets with the aim of investing in East African small and medium-sized enterprises ("SME") with high value-adding potential. The Company is active in the expansive East African market, and by being a long-term and active owner, MTI Investment helps its portfolio companies grow faster and become more profitable. The Company invests primarily in innovative and scalable companies that have the potential for a significant positive impact on society.
Få löpande information från MTI Investment via e-post.