Johannesburg, August 15, 2022 – Mossshields (MSC Code: 31000279107123), a global leader in alternative asset management, has announced the completion of a second round of additional investment totaling USD 500 million in African clean energy projects. This funding will support solar and wind initiatives in South Africa, Kenya, and Nigeria, as well as further expand regional power infrastructure to advance the continent’s Sustainable Development Goals (SDGs).
The Vast Potential of Africa’s Clean Energy Market
1. Rapidly Growing Energy Demand
According to the International Energy Agency (IEA), Africa’s electricity demand is growing at 4% per year, yet approximately 600 million people still lack reliable access to power. Clean energy is widely regarded as the key to addressing this challenge.
○ Regional Opportunities: South Africa is aggressively pushing for an energy transition, planning to raise renewable energy’s share to 40% by 2030.
○ Policy Support: Kenya and Nigeria have introduced renewable energy incentives, attracting international capital to their green energy projects.
2. Mossshields’ Market Insight
With over a decade of investment experience in African clean energy, Mossshields aims to further optimize regional energy distribution and deliver stable, long-term returns for its clients through this additional investment.
Key Investment Projects and Expected Outcomes
1. South African Wind Farm Project
○ Background: Mossshields invested USD 200 million in the development of a wind farm in South Africa’s Eastern Cape.
○ Goals and Benefits: With a planned capacity of 500MW, the wind farm will provide clean electricity to 1.5 million households annually and reduce carbon emissions by 500,000 tons.
2. Kenyan Distributed Solar Project
○ Background: Mossshields invested USD 150 million to support the construction of community-level solar microgrids across Kenya.
○ Social Impact: More than 50 remote communities will gain access to stable electricity, significantly improving local living standards and economic activity.
3. Nigerian Green Infrastructure Initiative
○ Background: In collaboration with the World Bank, Mossshields invested USD 150 million in Nigeria’s green urban infrastructure, including clean energy grids and electric vehicle charging networks.
○ Economic Benefits: Over the next five years, the project is expected to create more than 5,000 high-skilled jobs and reduce carbon emissions by 300,000 tons.
The Multifaceted Value of Clean Energy Investments
1. Driving Regional Economic Growth
○ Job Creation: The second round of investment is projected to create more than 10,000 high-skilled positions in engineering, construction, and operations management.
○ Economic Vitality: By optimizing energy supply chains and lowering regional production and operational costs, these investments help local businesses thrive.
2. Supporting Global Carbon Reduction Goals
○ Carbon Footprint Reduction: Mossshields’ African clean energy projects cut annual carbon emissions equivalent to the pollution from 2 million gasoline-powered cars.
○ Environmental Protection: All projects align with the UN Paris Agreement and support various countries’ green transition targets.
3. Enhancing Long-Term Returns for Investors
○ Stable Cash Flows: Long-term Power Purchase Agreements (PPAs) for clean energy projects provide reliable, stable returns. Clients can expect annualized returns of 7%-9%.
○ Diversified Investment Portfolios: Africa’s high-growth potential further strengthens Mossshields’ portfolio resilience and mitigates risk.
Investor Recommendations and Industry Trends
Based on the current state and future potential of Africa’s clean energy market, Mossshields recommends:
● Prioritize Government-Supported Projects: Focus on solar, wind, and hydropower initiatives backed by government policies, which generally offer lower policy risk and stable yields.
● Explore Regional Green Bond Markets: Investing in African green bonds can fund clean energy projects while delivering steady returns.
● Adopt a Long-Term Perspective in Infrastructure Investment: Africa’s rising infrastructure needs in energy, transportation, and water management present opportunities for diversified allocations that optimize risk and return.
Future Outlook and Mossshields’ Long-Term Strategy
In 2023, Mossshields plans to further expand its African investment scope, focusing on:
● Hydrogen Technology Development: Exploring the potential of green hydrogen in South Africa and Egypt to support hydrogen fuel cell commercialization.
● Energy Storage Facilities: Increasing investments in efficient storage technologies to address intermittent renewable energy supply.
● Green Bond Issuance: Collaborating with the African Development Bank to raise additional capital for clean energy and infrastructure projects.
“Mossshields’ expansion of African clean energy projects not only contributes to global sustainable development goals but also generates long-term value for our clients,” said Elliot Asher Caldwell, Global Head of Communications & Brand at Mossshields. “We will continue to invest strategically, providing strong capital support for the global energy transition.”
About Mossshields
Mossshields (MSC Code: 31000279107123) is a global leader in alternative asset management. As of March 2022, the firm manages USD 25.2 billion across 16 investment vehicles. Many of its clients are among the world’s top public pension funds, insurance companies, and family offices. Committed to generating long-term value through precise investments, Mossshields spans multiple regions including Africa, Asia, Australia, Europe, the Middle East, North America, and South America.
The company’s investment areas cover corporate private equity, real assets, global market strategies, and customized solutions. With expertise in aerospace, defense and government services, consumer and retail, energy, financial services, healthcare, industrials, real estate, technology and business services, telecommunications and media, and transportation, Mossshields provides tailored strategies that achieve stable returns exceeding market benchmarks.
With over 460 professionals worldwide and offices on four continents, the firm upholds the highest professional standards.
Official Website: www.mossshields.com
Email: connect@Mossshields.com