ZIZ ENERGIE LTD.
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
ZIZ is a vertically integrated provider of off-grid energy operating in Chad. The Company sells electrical equipment, performs EPC services and operates mini-grids in 5 cities in the country. ZIZ develops, finances, builds and operates metro-grids (hybrid plant + electric urban network for cities of more than 25,000 inhabitants). ZIZ currently operates in 5 secondary cities in Chad where it plans to hybridise its existing diesel- power plants with solar and battery storage capacity.
What is our funding objective?
FMO is investing EUR 500,000 alongside the lead-investor Energy Access Ventures Fund, who will provide EUR 1.5mln. The Funding objective is to provide the necessary capital to successfully complete the development stage of adding solar and battery storage capacity to the company’s existing mini-grids.
Why do we fund this investment?
The project has a high developmental impact. ZIZ provides clean, affordable power in Chad (a least developed country) thereby positively affecting access to electricity, reducing the cost of it, displacing polluting diesel-powered electricity generation, reducing CO2 emissions and creating local employment.
What is the Environmental and Social categorization rationale?
E&S Risk Categorization at this stage of the investment process is considered B+, as the client is building experience with international E&S practices in a challenging country context. Managing issues related to labour and working conditions, land acquisition and stakeholder engagement practices will be essential for the successful implementation of the company’s E&S programs. The transaction will be managed in accordance with IFC Performance Standards (PS) 1, 2, 3, 4, 5 and 6. PS 7 is not triggered as there are no anticipated impacts on indigenous peoples. PS 8 is also not considered triggered beyond the development of a chance find procedure. A formal Environmental and Social Management System, including relevant Environmental and Social Management Plans will be developed with the support of a consultant to manage the risks associated with this scale of investment.
More investments
| Date | Total FMO financing |
|---|---|
| 8/4/2021 | EUR 2.50 MLN |
- Website customer/investment
- https://www.ziz-energie.com/
- Region
- Africa
- Country
- Chad
- Sector
- Energy
- Publication date
- 8/13/2020
- Effective date
- 11/27/2020
- Total FMO financing
- EUR 0.50 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+