Due diligence for off grid solar in Africa

Challenge

We worked with InfraCo Africa, a development investor that seeks to alleviate poverty by mobilising private sector expertise and finance to develop high quality infrastructure projects in sub-Saharan Africa.

On their behalf, we carried out technical and health, safety, environmental and social (HSES) due diligence on a potential investment in KUDURA Power East Africa Ltd, a mini grid company operating in Kenya with operational sites already serving around 3000 customers and with plans to develop 22 new sites to reach over 6000 more.

Solution

We delivered a due diligence report on KUDURA’s operational mini grids as well as reviewed plans for new sites.

We utilised our extensive technical knowledge of off grid solar projects in Africa to assess the operational performance of existing sites and to focus on the suitability of the designs for new sites. We engaged our HSES experts to review KUDURA’s practices in line with internationally recognised standards.

Part of the project included a site visit in Kenya to an operational mini grid. This work was carried out remotely in conjunction with a local partner and was completed successfully and safely with a range of key KUDURA staff and customers interviewed and with technical reviews undertaken.

Impact

Following the delivery of the due diligence report, InfraCo Africa ultimately made the decision to invest in KUDURA. On 6 July 2021 InfraCo Africa and RVE.Sol (KUDURA’s parent company) signed a joint Shareholders Agreement committing a total of $8 million to scale up the business.