EIMS AFRICA CONCLUDES ACQUISITION TO SUPPORT GROWTH STRATEGY
EIMS Africa’s growth strategy, which anticipates a generation capacity of circa 1 500MW, exceeding 20 renewable energy Independent Power Producers by late-2022, has necessitated the acquisition of REESCO, a key step in facilitating the expansion.
Already one of South Africa’s largest renewable energy platforms, comprising a portfolio of 13 utility-scale renewable energy projects with a combined generation capacity of over 850MW, the company’s bullish plans are in line with the country’s accelerated move to renewable energy. With this, the successful acquirement of Renewable Energy Empowerment Management Services (Pty) Ltd, known as REESCO in the local renewable energy market, will see its team joining EIMS Africa to bolster capacity and capabilities.
Ryan Hammond, EIMS Africa CEO, explained the motivation for the transaction. “We are in a significant growth phase, having started with just three projects back in 2018 and having grown the platform to 13 projects to-date. We have several other secured projects at various stages of the financial close process and by the end of this year, we expect that number to almost double, along with our platform’s generation capacity. This growth is not possible without a dedicated team of experienced individuals who know what it takes to deliver and operate these projects. The REESCO acquisition is a key step in facilitating our growth as it augments the depth and experience of our team.”
REESCO’s team adds its experience as an expert management services company that specialises in technical, administrative and compliance competencies related specifically to South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) regulatory environment.
Dr Tamuka Kaseke, Founder and CEO of REESCO, added, “We believe this is a win-win transaction for both parties. EIMS Africa gets to take on a solid and seasoned team with over eight years’ experience, whilst the REESCO staff get an opportunity to diversify their knowledge and experience base in terms of renewable energy asset management. We wish them well in their new growth path.”
EIMS Africa is majority owned by the Old Mutual IDEAS Fund, managed by African Infrastructure Investment Managers (AIIM).
In closing, Sean Friend, the AIIM CIO for SADC investments and Co-Portfolio Manager of the IDEAS Fund, concluded, “’We are committed to continuing to play a leading role as one of the largest South African-owned investors in the local renewable energy industry. EIMS Africa is the primary vehicle for this investment and this acquisition further signals our ongoing commitment to growing the EIMS Africa renewable platform.”
About EIMS AFRICA
Energy Africa is majority owned by the IDEAS Fund, which is managed by African Infrastructure Investment Managers (Pty) Ltd. As a leading renewable energy company, the EIMS Africa portfolio has an installed capacity of over 850MW, generates combined revenues of more than ZAR 3bn annually and represents a total investment of more than ZAR 15bn.
About African Infrastructure Investment Managers (AIIM)
AIIM, a member of Old Mutual Alternative Investments* (OMAI), has been investing in the African infrastructure sector since 1999 with a track record extending across seven African infrastructure funds. AIIM’s team of 40+ investment professionals is based out of five locally staffed offices across the continent in Cape Town, Johannesburg, Nairobi, Lagos and Abidjan providing direct on-the-ground coverage of our key markets.
AIIM currently manages an aggregate AUM of USD2.4 billion in assets across the power, renewable energy, digital infrastructure, mid-stream energy and transport sectors with operations in 19 African countries. AIIM’s power portfolio extends across renewable energy and thermal power assets which have a combined generation capacity of over 2,700MW, of which 72% is renewable energy providing clean power to more than 1.1 million households a year.
AIIM is a licensed FSP approved by the Financial Sector Conduct Authority in South Africa.
*Old Mutual Alternative Investments (OMAI) is a private alternative investment manager in Africa, with over USD4.8 billion (ZAR76 billion) under management in infrastructure, private equity, hybrid equity and impact funds. It is a member of Old Mutual Investment Group, the investment management arm of Old Mutual.