Local solar firm, Cicada Solar Limited, has secured a US$10 million faciulity from Facility for Energy Inclusion (FEI) to promote renewable energy solutions and vendor financing for genuine Zimbabwean enterprises.
FEI is an African energy financier designed to support small-scale independent power producers delivering power to the grid, mini-grids, commercial and industrial and captive power projects. FEI was set up by the African Development Bank as part of its 'New Deal for Africa' initiative.
“On August 30 2024, the Facility for Energy Inclusion and Cicada signed finance documents to provide US$10 million of long-term senior debt to Cicada Solar Limited. This financing will enable the company to continue to grow its business providing renewable energy solutions and vendor financing for credible businesses in Zimbabwe,” British-based investment banker and asset manager Cygnum Capital Group said, in a statement.
“Cicada Solar is a leading provider of solar and solar hybrid commercial and industrial solutions in Zimbabwe. By deploying and financing renewable energy solutions, Cicada Solar enables businesses to access a more affordable and reliable source of energy. With strong local expertise and a long-term commitment to the market, Cicada Solar has a competitive advantage in the market, allowing it to prioritise clients’ needs effectively.”
Cygnum Capital Group manages six pioneering funds including FEI and has assets under management worth over US$1,1 billion with investments in 32 African countries.
“Further demonstrating its leading role in the commercial and industrial sector in Africa, the Facility for Energy Inclusion has been able to leverage its experience to deliver this milestone transaction in Zimbabwe,” Cygnum Capital Group FEI fund lead and managing director Carmen de Castro said.
“This achievement highlights the Fund’s capability to invest in frontier markets with limited access to long-term infrastructure financing, such as Zimbabwe. We look forward to continuing to support Cicada Solar as it scales up.”
Cicada Solar managing director Jonathan Wood said they were delighted to conclude this long-term facility with FEI, “which will enhance our drive to reduce the cost of energy for our commercial and industrial clients”.
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“Zimbabwe’s current growth trajectory needs to be underpinned by sustainable and affordable power and Cicada Solar intends to play a meaningful role in this area. To have FEI, with its sizeable funder base, together with our local funding partner, NMB Bank, join forces with us is most encouraging.”
Cicada Solar provides a holistic energy solution in scoping, building, maintaining and operating solar photovoltaic and battery storage projects, together with providing customers with flexible financing solutions.
Cicada Solar is part of Cicada Holdings, one of Zimbabwe’s largest diversified agricultural and green-economy businesses.
The group encompasses investments in forestry and timber processing, avocado, macadamia and banana estates, row crop production, renewable energy and carbon project development. The group manages extensive land assets across Zimbabwe.
