InfraCo to sell its stake in Golomoti Solar to Old Mutual Infrastructure Investment Trust Fund (Malawi)
18th February 2025
Blantyre, Malawi: At a signing ceremony held in Blantyre, Private Infrastructure Development Group (PIDG) company InfraCo Africa Ltd (InfraCo) signed an agreement to sell its 25% stake in Golomoti JCM Solar Corporation Ltd to Old Mutual Infrastructure Investment Trust Fund (Malawi) which sits within Old Mutual Investment Group’s Alternative Investments capability. Old Mutual Malawi’s involvement will be beneficial in reducing currency exchange risk on the project whilst attracting future investment into the country’s renewable energy sector.
Speaking after the signing, Ravi Dhanani, PIDG Senior Asset Manager for InfraCo, said, “We are excited to be engaging with Old Mutual Malawi, which is committed to Responsible Investing, and to supporting Malawi’s renewable energy sector as part of its diversified infrastructure portfolio.” Mr Dhanani continued, “This transaction epitomises PIDG’s project development offering – InfraCo – and aligns well with our Group-wide strategy to unlock new sources of funding for sustainable infrastructure. We use our public funding to de-risk infrastructure projects, working with private sector partners to develop them to the highest standards of health, safety, environmental and social governance, and business integrity; just as we have done here in Malawi together with JCM Power. We then seek to sell our stake in these profitable assets to reputable investors such as Old Mutual Malawi – enabling us to recycle our funding into the development of new, climate-resilient infrastructure across Africa.”
Mphatso Kasalika, Old Mutual Investment Group’s Acting Managing Director, said the completion of the transaction marks an exciting milestone within the Group’s strategy, which includes investing in renewable energy, as part of its responsible investment philosophy. He added that “It is a demonstration of a mutually beneficial strategy, where investors can expect solid returns from non-traditional investments, with significant economic and social impact, as the country seeks to expand and diversify energy generation.” Commenting further, Mr Kasalika was delighted that InfraCo’s involvement in de-risking the initial phases of the project to the point of viability, paved the way for Old Mutual’s Infrastructure Trust Fund to invest, allowing for local participation in sustainable projects in partnership with experienced players, such as JCM Power.
Commissioned in 2022, the 20MWac solar plant at Golomoti in Dedza District, approximately 100km south-east of the capital Lilongwe, has a 5MW Battery Energy Storage System (BESS). When built, Golomoti’s BESS was the first grid-connected, utility-scale hybrid solar BESS in sub-Saharan Africa. Made possible by support from Innovate UK’s Energy Catalyst and RINA, the BESS serves to stabilise the plant’s delivery of renewable energy to Malawi’s national grid. JCM Power and InfraCo, together with additional grant funding from PIDG, have worked closely with the neighbouring Pitala community, to provide reliable and safe drinking water access to over 2,000 people through the installation of nine boreholes. Additional projects under JCM’s Corporate Social Responsibility and Livelihood Restoration programs include training and provision of inputs for sustainable agricultural initiatives, the construction of a community grain storage warehouse and investments in both education and local health care facilities. JCM Power are also demonstrating the value of agrivoltaics through growing chillies, bee-keeping and grazing sheep under the solar panels.
The signing aligns with Malawi’s strategic vision as set out in Malawi 2063 – Transforming our nation.[i] The vision emphasises the importance of developing bankable infrastructure projects – specifically around renewable Independent Power Producers (IPPs) - which can attract private investment and meet the growing energy needs of customers in Malawi, and neighbouring countries.
The deal will be finalised in August, and JCM Power will continue to operate the Golomoti Solar plant with Old Mutual Malawi appointing a director to the company board.
ENDS
Old Mutual Investment Group: Old Mutual Investment Group (OMIG) is the leading fund manager in Malawi with assets under management sitting over USD1.4 billion as at December 2024. OMIG offers a wide range of investment solutions for both institutions and individuals. OMIG manages a comprehensive spread of investments across listed equity, interest bearing assets, property and alternative investments. Its investment capabilities are managed by specialists in each field, who focus purely on delivering on their customer mandates. OMIG is committed to growing customers wealth by delivering consistent strong returns. Investing responsibly for the long term, delivering strong returns while also contributing to the greater good is at the heart of OMIG’s strategy
The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity, and urgency. PIDG offers Technical Assistance for upstream, early-stage activities and concessional capital; its project development offering – InfraCo– invests in early-stage project development and project and corporate equity. PIDG credit solutions include EAAIF (the Emerging Africa and Asia Infrastructure Fund), one of the first and more successful blended debt funds in low-income markets; GuarantCo, its guarantee arm that provides credit enhancement and local currency solutions to de-risk projects; and a growing portfolio of local credit enhancement facilities, which unlocks domestic institutional capital for infrastructure financing. Since 2002, PIDG has supported 233 infrastructure projects to financial close, which provided an estimated 228 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Global Affairs Canada and Germany. www.pidg.org
For further information please contact:
Patience Chatsika, Marketing and Corporate Affairs Executive, Old Mutual: +265 993 89 89 99
Lorna McNae, PIDG Senior Communications Manager for InfraCo: lorna.mcnae@pidg.org
[i] MW2063-VISION-FINAL.pdf Accessed 04.02.25