This archive report was first published on 3 July 2019.
Published on July 3, 2019, Gridworks, a CDC-backed investment firm, has made its first investment since launch, injecting $7.5 million into Mettle, a South African solar firm.
Mettle will use the investment to expand its operations across Africa, reducing carbon emissions and demonstrating the commercial viability of solar power for businesses on the continent.
According to Simon Hodson, CEO of Gridworks, the investment will help Mettle bring clean, reliable power to businesses in new African markets where power is often unreliable and leaves a greater carbon footprint.
Mettle has 29 projects (15.4MW) in South Africa, Namibia, Kenya, and Indian Ocean islands, with a further 12MW currently under construction. The firm plans to expand its footprint to other markets in Sub-Saharan Africa, including Angola, Mozambique, Tanzania, Nigeria, and Madagascar.
The investment supports CDC's Climate Strategy and contributes to Sustainable Development Goals 7 and 13, aiming to ensure access to affordable, reliable, and modern energy for all, as well as combat climate change.
By providing cheaper, reliable, and cleaner energy to businesses, Mettle will help reduce dependence on diesel generators and pioneer the use of battery storage for business users in Africa.
Gridworks aims to invest over $300 million in African electricity infrastructure, with Mettle Solar being an important milestone in that journey.
In a statement, Francois Verloren van Themaat, CEO of Mettle Solar Investments, said: 'We are very excited to have CDC through Gridworks as a major investor in our business.'
Chris Chijiutomi, Head of Infrastructure Equity at CDC Group, added: 'Access to reliable power is a key barrier to economic development, we believe this investment will be one of many through Gridworks in the power distribution sector.'
