South Africa’s Standard Bank, Africa’s largest bank by assets and market value, has provided a whopping $170 million (R1.87 billion) to Gigawatt, a Mozambican company, to help build a 118 Megawatt (MW) gas-fired power plant in Ressano Garcia, Mozambique.
Once completed, the project is expected to supply approximately 12% of Mozambique’s total power demand, including in the capital Maputo.
Mozambique, in particular its capital city, gets most of its electricity from South Africa, and the project will reduce that reliance, and help unlock Mozambique’s gas-to-power potential, the Johannesburg-based bank said this week.
Standard Bank’s research shows that demand for power in Mozambique, which reaches around 805MW at peak usage at present, is growing at roughly 14% per annum. This means that the country needs more MWs to cope with this growing demand.
“The Gigawatt transaction not only demonstrates Standard Bank’s commitment to Mozambique, but also underscores the role that financing can play in helping resource-rich countries benefit from their own natural resources,” Ronaldo Toledo, Standard Bank Mozambique head of investment banking, said in a statement.
Standard Bank’s other financing deals in Mozambique’s oil and gas, and power and infrastructure sectors include more than $540 million of debt extended to the Republic of Mozambique Pipeline Investments Company Limited (ROMPCO), and an additional $20 million of debt to the Matola Gas Company (MGC).
The bank has also provided another $240 million of debt to an unincorporated joint venture consisting of Sasol Petroleum Temane Limitada (SPT), which sources gas from Sasol’s fields in Mozambique’s Temane/Pande region