Louis Coetzee, CEO of Kibo Energy. Picture: HETTY ZANTMAN
Louis Coetzee, CEO of Kibo Energy. Picture: HETTY ZANTMAN

Power project developer Kibo Energy has secured R22m in funding from an investment consortium to develop energy projects, primarily in Africa.

Kibo a small-cap company that trades on the JSE as well as London’s alternative investment market (AIM), said on Thursday that it has signed a binding term sheet with an investment consortium consisting of several wealthy entities and individuals — including two major Kibo shareholders — for up to £1m.

The funds will assist in the continued development of the company’s diverse energy project portfolio, which includes coal-fired projects, to address acute power shortages in Mozambique and Tanzania.  

The announcement comes as investor sentiment is seen to be turning against coal-fired power, making funding for such projects much harder to come by.

Louis Coetzee, CEO of Kibo, said the agreement is a “compelling endorsement” from highly experienced investors and long-term shareholders that will enable the continued development of the projects, which are approaching commercialisation.

The funds will assist Kibo with its primary focus on developing Benga, a coal-fired power plant in Mozambique, where it hopes to deliver up to 400MW to the impoverished nation.

The project, Coetzee said, “is making vast strides forward” and Kibo realistically expects the delivery of two power purchase agreement before the end of 2020 for up to 400MW.

The company is also working to to make headway in Tanzania, where it awaits further guidance from authorities regarding a new tender for coal-fired power projects

The newly secured funding will also be used complete Kibo’s gas-fueled Bordesley power station in the UK, which it anticipates bringing into production before year-end.