DI Frontier Fund 2

East Africa,Africa Infrastructure

Frontier Investment Management (FIM) develops, constructs and operates renewable energy projects in sub-Saharan Africa. Established in 2011, the Fund Manager is headquartered in Nairobi and Copenhagen and has a presence in Uganda, Rwanda and Tanzania.

Frontier Energy Fund II (Fund II) is an early-stage renewable energy fund focused on East Africa.

Our investment

In 2017, CDC invested $30 million into Fund II. Our role as an early anchor investor in the fund catalysed other DFI capital, enabling Fund II to reach a total fund size of $116 million. Our investment will support the development of power assets across the continent.

Expected impact

This successfully invested in a range of renewable energy projects – solar, geothermal, wind and hydro power – that are now under development or in operation throughout Uganda, Kenya, Rwanda and Tanzania.

Environmental and social aspects

We have worked closely with the fund manager to develop and implement an Environmental and Social Management System (ESMS) that has the capacity to manage the higher level of E&S risk associated with this sector..

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, East Africa
Countries

For funds, the countries listed here are those the fund has invested in so far.

:
Kenya, Rwanda, Tanzania, Uganda
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

:
Infrastructure
Website:
http://frontier.dk/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
Frontier Investment Management
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
March 2017
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$30m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Denmark

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
Rwenzori Hydro (PVT) Ltd

The Nyamagasani 1 Hydro Power Project intends to utilize the hydro potential of the river Nyamagasani as it drops down over a high altitude plateau while flowing down from the upper forested region of Mount Rwenzori. The river has a catchment area of approx. 92 km2 predominantly inside the Rwenzori National Park. Rwenzori Hydro (PVT) Ltd is the project company for Nyamagasani 1 Hydro Power Project.

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Uganda Africa, East Africa Infrastructure September 2017 Active
Elemental Energy Ltd. Uganda Africa, East Africa Infrastructure December 2017 Active
Greenewus Energy Africa Ltd

Greenewus Energy Africa Ltd. is a special purpose vehicle established with the sole purpose of developing and implementing the Kakaka Hydro Power Project. The Kakaka project is a 5.0 MW hydropower plant utilizing the hydropower potential of the river Rwim.

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Uganda Africa, East Africa Infrastructure December 2017 Active
Kiwira Energy Ltd

The Kiwira Hydro Power Project consist of 8 sites on the Kiwira River and tributaries in Mbeya Region in South Western Tanzania. The rivers system runs through a valley around Mt. Rungwe into Lake Nayasa.

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Tanzania Africa, East Africa Infrastructure December 2017 Active
Momba Hydropower Ltd

The Momba Hydro Power Project is located at Yala Falls on Saesi River in Momba District, South-Western Tanzania. The Saesi River is a tributary to Momba River, which flows into Lake Rukwa.

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Tanzania Africa, East Africa Infrastructure December 2017 Active
Ndugutu Hydro Power Company Ltd. Uganda Africa, East Africa Infrastructure December 2017 Active
BVC Geothermal Ltd

The Barrier Volcanic Complex (BVC) geothermal prospect is a greenfield site located in the northern sector of the Kenya rift, immediately south of Lake Turkana. BVC Geothermal Limited is the project company for Olsuswa Energy Limited (Kenya).

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Kenya Africa, East Africa Infrastructure December 2017 Active
Esikipeto Power Generation Ltd

The Esilanke Wind Project intends to use the Great Rift Valley wind resource to generate wind power at a site located in Kajiado County approximately 35 km Southwest of Nairobi.

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Kenya Africa, East Africa Infrastructure December 2017 Active
Nithi Hydro Power

The Nithi Hydro Power Project is a run of river hydro power plant on the eastern side of Mount Kenya near the town of Chuka.

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Kenya Africa, East Africa Infrastructure December 2017 Active
Radiant Energy Ltd

This is a 40 megawatt solar PV project, located near Eldoret (approximately 300 kmn from Nairobi) in Western Kenya, which will generate power to the national grid in Kenya. It is expected to start operating towards the end of 2017.

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Kenya Africa, East Africa Infrastructure December 2017 Active
Chania Green Generation Ltd Kenya Africa, East Africa Infrastructure March 2018 Active
DC Frontier Energy Ltd

DC Frontier Energy Ltd is a project company focussed on developing and implementing hydropower projects in Rwanda.

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Rwanda Africa, East Africa Infrastructure March 2018 Active
Eldosol Energy Ltd

The Eldosol solar projects intend to use solar PV technology to generate power to the national grid in Kenya. The projects are located close to Eldoret in Western Kenya approximately 300 km from Nairobi.

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Kenya Africa, East Africa Infrastructure March 2018 Active
Olsuswa Energy Ltd

The Barrier Volcanic Complex (BVC) geothermal prospect is a greenfield site located in the northern sector of the Kenya rift, immediately south of Lake Turkana.

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Kenya Africa, East Africa Infrastructure July 2018 Active
Wind for Prosperity Kenya

Wind for Prosperity is the brand name for the concept developed by Vestas Wind Systems to provide power to off-grid locations using a combination of one or more wind turbines and a diesel generator. Kenya has been identified as the most suitable country in Sub-Saharan Africa where this power solution can be developed.

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Kenya Africa, East Africa Infrastructure July 2018 Active
Djibouti Solar Park 1 Ltd Africa, East Africa Infrastructure October 2018 Active
Rukarara VI HPP Ltd Rwanda Africa, East Africa Infrastructure October 2018 Active
Ziba Ltd Uganda Africa, East Africa Infrastructure October 2018 Active
Frontier Energy Hydropower Ltd Zambia Africa, Southern Africa Infrastructure January 2019 Active
Mukoki HPP Ltd Uganda Africa, East Africa Infrastructure January 2019 Active