Africa GreenCo sells 10% stake to Sanlam Alternative Investments for $10 million

Sanlam Alternative Investments has taken a 10% stake in Africa GreenCo for $10 million, Engineering News reported on 25 May. Sanlam Alternative Investments is the alternative-investments arm of Sanlam, and it becomes the first private institutional shareholder in GreenCo.

What GreenCo does

GreenCo trades and buys renewable electricity. Its model combines long-term offtake deals with independent power producers, power sale agreements with mines, commercial and industrial users and utilities, regional trading across the Southern African Power Pool, and portfolio optimisation.

Where it operates

The company works in Zambia, South Africa, Zimbabwe and Namibia, and licensing is under way in the Democratic Republic of Congo. It plans to take part in the emerging South African Wholesale Electricity Market.

Traction and plans

GreenCo has traded more than 2 TWh of electricity to date. It says it holds the highest purchase-side market share across the Southern African Power Pool's competitive markets, and it has a team of more than 80 professionals. The money will be used to scale its trading operations. Co-founder and CFO Pug Bennet said: "This round positions GreenCo to further scale".

At a glance

• Company: Africa GreenCo
• Raised: $10 million for a 10% stake
• Investor: Sanlam Alternative Investments
• Markets: Zambia, South Africa, Zimbabwe and Namibia
• Team: More than 80 professionals
• Key figure: More than 2 TWh traded