Project detail - Solar Century Africa Limited

Who is our prospective customer?

Solarcentury Power (SCP) is a regional renewable energy platform owned by Solar Century Africa Limited, owned by BB Energy Group. SCP develops, constructs, and operates utility‑scale solar PV assets across Africa – the primary focus of the platform is to develop renewable energy generation assets that will sell power into the Southern Africa Power Pool (SAPP) and bilaterally to large commercial & industrial customers.

What is our funding objective?

FMO will refinance renewable energy assets developed by SCP, as well as finance future solar assets via a mini‑perm structure. FMO will participate through a committed facility of USD 40 million, and a prospective uncommitted facility of USD 40 million. The committed facility is for the renewable energy assets in Namibia and Zambia. The uncommitted facility will be for a 113MW solar plant in Lotsane, Botswana.

Why do we want to fund this investment?

FMO enables renewable energy scale‑up in Least Developed Countries (ca. 90% of the energy generated through the committed facility will be for Zambia). The underlying projects are 100% Green and 100% RI, and contribute to SDG7, SDG13 and SDG10, and strengthen the regional market development of energy trading in the Southern African Development Community.

What is the Environmental and Social categorization rationale?

This investment is considered Category B+, driven by the impacts in the underlying portfolio. Potential key impacts include biodiversity, land acquisition and pressure on water resources, next to the specific risks associated with development and construction of solar PV projects. Contextual risks relate to climate vulnerability, incl. worsening drought, water scarcity and persistent social vulnerabilities. Against this backdrop, ESG performance monitoring will focus on impact on livelihoods (among which food security) by land acquisition for the projects; water demand for the projects and how this may cause (further) water stress in the project areas; workers' rights (e.g. equal employment opportunities, non-discrimination, freedom of assembly and association, grievance mechanism, demobilization plans from construction to operational phase); as well as the risk of heightened Gender-Based Violence and Harassment incidents (e.g. through labour influx, at the workplace). IFC Performance Standards (PS) 1-6 are triggered. Environmental and Social Impact Assessment studies have excluded IFC PS 7 and 8, to be confirmed during due diligence. Any gaps will be addressed in an Environmental and Social Action Plan.