Tanz Trust Latest: Your Gateway to East Africa's Premier Investments

  📍 Location:  South Africa
💡 Project Type: Utility-Scale Solar Power (525 MW)

REF: DFA24

💵 Total Debt Finance: $890 Million
 

🚀 Why Invest: The Investment Case

• ✅     Shovel-Ready & De-risked: Fully permitted with a signed 25-year  PPA with (South Africa's national utility). All critical licenses, land agreements, and grid connection approvals are secured.
• 💰     Attractive Returns: Projected Leveraged IRR of 14-18% for equity investors, backed by a stable, contracted revenue stream.
• 🏗️      Execution-Ready: Located just 10 km from the existing  grid substation, minimizing connection costs and delays. 30-month  construction timeline to commercial operation.
• 🤝     Strong Partnerships: Supported by the Free State Provincial  Government and developed with an experienced EPC partner, embedded within  a larger renewable energy pipeline.

📈 Positive Impact Highlights

• Economic  Engine: Injects $890M into the South African      economy, creating massive employment and stimulating local supplier  chains.
• Energy  Security: Delivers 525 MW of reliable, clean power to help stabilize the national grid and reduce load-shedding.
• Community  & Skills Legacy: Prioritizes local hiring and provides  vocational training, building long-term technical capacity in the region.
• Environmental  Leader: Displaces coal-based power, avoiding thousands of tons of CO₂ emissions  annually and supporting South Africa's climate goals.

🎯 Ideal Investor Profile

The project is seeking Debt Finance partners for the $890 million requirement. The ideal investor is:

• An      Infrastructure Fund, Development Finance Institution (DFI), or Commercial Bank with an appetite for large-scale, impactful energy projects in emerging markets.
• Looking      for a de-risked opportunity with a secured off-taker (Eskom),  full permits, and a clear path to revenue.
• Motivated  by a blend of strong, predictable returns (14-18% IRR) and the  creation of tangible Environmental, Social, and Governance (ESG)  impact.
• Experienced in project finance for renewable energy and comfortable with the  30-month construction timeline before operational cash flows begin.

A 200 MW solar power plant in M. District, Zambia, structured in four 50 MW phases. 

REF: DFA26. 

Seeking: $200 Million in Debt Financing

📈 Investment Highlights & Financial Analysis

This project offers a robust, bankable opportunity with predictable long-term returns, de-risked by a sovereign PPA and a conservative capital structure.

• ✅     Bankable & De-risked Structure:
  • 25-year PPA with national utility, providing a secure  revenue backbone.
  • 100%  Debt-Financed: Full $200M project cost covered by a commercial  loan, simplifying the capital stack.
  • Fully  Developed: All development milestones achieved, ready for       construction.
• 💰     Strong & Stable Returns:
  • Projected  IRR: 9.6% - 10.3%, offering a solid return for a utility-scale,   contracted power asset.
  • High  NPV of $301 Million, demonstrating significant value creation over  the project's lifetime.
  • Dual  Revenue Streams: Combines $6.11M annual energy revenue (tariff at $0.069/kWh, escalating at 1.5%) with an additional $300,000/year  from carbon credits.
• 📊     Conservative & Resilient Financials:
  • Attractive       LCOE: The Levelized Cost of Electricity ($0.068/kWh including       capital repayment) is below the PPA tariff, ensuring healthy margins.
  • Healthy Debt Service: A Debt Service Coverage Ratio (DSCR) of   1.1 – 1.2 indicates sufficient cash flow to comfortably service the loan.
  • Low-Cost   Operator: A competitive Capacity Factor of 20.25% and  phased construction optimize energy yield and manage execution risk.
• 🌍     High-Impact ESG Champion:
  • Energy  Security: Directly addresses Zambia's power crisis by diversifying away from drought-vulnerable hydropower.
  • Transformative Community Model: Goes beyond CSR by establishing community-owned  enterprises (woodworking, regenerative sheep farming) that generate       sustainable income.
  • Environmental Leadership: Cuts emissions and pioneers a sustainable land-use model with AGtaics.

🎯 Ideal Investor Profile

This project is ideally suited for Debt Providers such as:

• Development Finance Institutions (DFIs) and Export Credit Agencies (ECAs) seeking to catalyze climate-friendly infrastructure and  economic development in Zambia.
• Commercial  Banks and Infrastructure Debt Funds with an      appetite for structured project finance, attracted by the sovereign      off-taker, predictable cash flows, and an attractive risk-adjusted return.
• Impact Investors aligned with the Sustainable Development Goals  (SDGs), particularly those focused on affordable and clean energy (SDG 7), decent work and economic growth (SDG 8), and climate action (SDG 13).

The investor will be a crucial partner in building a project that delivers both financial returns and profound national and community-level impact.