#2 AXIAN Newsletter : October 2024

Welcome to our 2nd edition of the AXIAN Group newsletter!

We are thrilled to connect with you again and embark on a journey of shared knowledge.

Get ready for a powerful blend of exclusive Group news, industry analysis and more...

Inclusive Energy : Powering Africa's Future

An interview with Benjamin Memmi

In Africa, there is a wealth of energy resources, from solar to hyrdro, but also fossil fuels. Today, the question remains: how can African countries reconcile the exploitation of fossil fuels with the development of renewable energy to palliate to the growing energy needs of the continent and its people? Benjamin Memmi answers…

There has been a growing global consensus among African nations to incorporate renewable energy into their energy mix. Although, fossil fuels will remain a significant source of energy, accelerating investment in renewable energies must be a priority. In recent years, there has been growing effort to develop more solar projects, yet the target of 30-35% solar production as a proportion of the energy mix is still not being met. For a successful transition, governments and the private sector must work collaboratively on creating favourable regulatory frameworks, tax incentives and innovative financing mechanisms that reduce dependence on fossil fuels and simultaneously increase the share of renewables at a competitive price.

Over the last few months, prices have fallen for solar panels and for storage batteries, both of which represent key elements in the use of solar energy on grids. These factors, coupled with the competitive financing conditions offered by international development institutions, will help secure this transition.

What are the main challenges in implementing renewable projects on the continent?

In spite of a stated willingness to increase renewable energy capacity, the availability of capital, and the commitment of IPPs (independent power producers) and utilities, the rate at which projects are being rolled out is not yet reaching expectations. Consequently, an increasing number of Africans do not have access to electricity, with over 650 million people left in a precarious situation of energy supply. In order to improve these conditions, It is imperative to optimise each stage of the project cycle through these 3 points:

1. Project planning: It is vital to improve planning and to clearly identify the specific needs of each country, in order to concentrate efforts on the most relevant projects, underpinned by the support of public services.
2. Legal and commercial negotiations: Standardised contracts are needed to overcome the recurring challenges of bankability and guarantees, which are essential for securing financing. Additional support from DFIs?(Development Finance Institutions), particularly in terms of guarantees for countries and public services, would help smooth the way.
3. Access to finance: If the cost differential between renewable energies and resources such as gas is to be reduced, it is essential to make the financing of renewable projects more accessible and competitive. Currently, financing conditions are too restrictive, with high requirements in terms of guarantees and preconditions. DFIs must therefore work to offer more attractive financing solutions for IPPs to reduce costs and achieve national targets.

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AXIAN Energy is developing several large-scale renewable energy projects across Africa. Tell us about your flagship project in West Africa, the Kolda solar power plant. In what way is the Kolda project a strategic lever for accelerating the energy transition and strengthening the energy independence of southern Senegal?

This Kolda project is the first solar power plant located in the southern part of Senegal and will be the largest photovoltaic project with a battery energy storage system (BESS) in West Africa. The construction work will begin in the last quarter of 2024, with commissioning of the plant scheduled for 2026. For this project, we have explored innovative technical solutions to effectively meet the energy needs of the underserved Casamance region and provide a responsive solution to support the vision of the local authorities. The plant will have an annual production capacity of 60 MW and will supply green electricity to almost 235,000 people.

The 72 MWh battery storage will provide a secure supply of electricity for three hours at peak consumption times in the evening, while enhancing the stability of the grid. This technology plays a pivotal role in facilitating the integration of additional renewable energy capacity into Senegal's electricity grid, contributing to the nation's objective of achieving 40% renewable energy generation by the year 2030.

Financing renewable energy projects in Africa is often complex. Can you tell us more about the financing model adopted for the Kolda project and the partners involved?

Financing renewable energy projects in Africa often presents challenges in terms of mobilising resources and sharing risks. For the Kolda project, we opted for a hybrid financing model that combines private capital with support from international financial institutions. As a result, the project was able to secure financing of around 100 million euros, thanks to a coalition of leading financial partners. These institutions provided essential expertise and financial support to move the project forward and ensure its sustainability.

Can you tell us about AXIAN Energy's prospects and the projects you are planning to strengthen your position in the renewable energy sector in Africa?

Today, we have a portfolio of operations with 133MW of renewable capacity, and a pipeline of 800MW of projects under development. Looking ahead to 2030, our ambition is to exceed 1GW of installed renewable capacity. Our commitment is to continue to develop our operations in Africa with a vision rooted in a detailed understanding of local contexts and the specific energy requirements of each country and region in which we operate.

To be more specific, half of the energy mix that we aim to promote is made up of hydroelectric projects, and the other half is dedicated to solar power plants. In Madagascar, our flagship project is the development of the Volobe hydroelectric dam, with a capacity of 120 MW. In Congo-Brazzaville, we have also taken over a 120 MW hydroelectric facility, which we will renovate to optimise its performance and sustainability.

For us, 2025 promises to be a pivotal year for the development of our solar power plants, given the sustained growth momentum in West Africa and the Indian Ocean. Among our flagship projects, we are starting construction of a solar power plant in Mauritius, scheduled to be built in two phases, providing 70 MW of installed capacity. In Benin, we are also planning to build several power stations with a total capacity of 66 MW, with work due to start in 2025. We are also actively exploring a third expansion phase for our Ambatolampy plant in Madagascar, which will add a further 15 MW to bring the total installed capacity to 55 MW.

These projects underline our commitment to making a significant contribution to the development of renewable energies and energy inclusion in Africa.

Walking the Talk on Africa’s Energy Challenge

Author : Hassanein Hiridjee featured in Energy Intelligence

Africa faces a profound energy injustice. While the Global North — the group of the world’s most developed countries — is having discussions about using artificial intelligence, the Global South is still talking about access to energy. Astonishingly, 600 million people in Africa remain without access to electricity — a reality that, in 2024, is wholly unacceptable. Across the continent, dedicated private-sector leaders are poised to address this challenge.

We need bold and practical initiatives from governments, multilateral organizations and investors in Africa and around the globe. With COP29 just around the corner, my message to the international community is simple: To power up Africa, listen to us. We have the solutions, so let’s stop talking and just apply them. What’s required now is a concerted effort to unlock investments that will empower the private sector to spearhead the necessary projects.

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To read the full article : click here

We’ve been on the move at AXIAN and there’s been some great happenings during the month of October.

AXIAN Financial Services Ltd appoints new board members

Three exceptional leaders join the Board of Directors of AXIAN Financial Services Ltd: Selma Ribica , Henri Rabarijohn, and Tine Wollebekk !

Their expertise in banking and finance will enhance our mission to empower millions of Africans with essential financial services.These appointments underscore our dedication to addressing key challenges in sustainable development across the continent. With their insights and expertise, we are poised to drive innovative solutions that foster economic growth and equality.

Read more here

BNI MADAGASCAR : Celebrating 10 years of collaboration between AXIAN Group & CIEL Group

In 2014, CIEL Group and AXIAN Group drew a new ambition for BNI MADAGASCAR : to become the country's leading bank for its local presence and network, and to be the leading financier of the Malagasy economy. This 10th anniversary is an opportunity to celebrate this achievement, to congratulate and remember all those who have made a significant contribution to building today's BNI.

Nevertheless, BNI MADAGASCAR is only at the beginning of its transformation.This transformation must get its momentum, positioning BNI as an innovation and financial inclusion actor, serving the nation’s growth and development as well as serving its customers

Madagascar strives for renewables revolution

As part of Madagascar's broader efforts to advance renewable energy, one notable project on the drawing board is the Volobe hydroelectric power plant near Toamasina in eastern Madagascar. This innovative run-of-the-river design will utilize turbines placed within the river's flow, minimizing environmental impact by avoiding the construction of a large dam and reservoir.

In an interview with fDi Intelligence , Nicolas Delaunay , Chief Investment Officer at AXIAN Energy (one of Volobe's investors), highlighted the project’s potential to provide a “massive boost” to the country's electricity grid.

Read the article here

Pink October, a Group-wide expression of solidarity! ??

At AXIAN Group , we believe in the power of making change through action. In every region where we operate, our employees are rallying to make Pink October an unforgettable month dedicated to the fight against women's cancers.

Our initiatives this month:

• Free screenings: A preventive measure for every woman, reminding them that their health is our priority.
• Solidarity fund: Every contribution supports medical research and patient care.
• “Did you know” session : Awareness sessions to help understand and prevent women’s cancers.
• Solidarity Walk: For every kilometer walked, we raise funds. Together, let’s make every step a step for the cause!

Together, let’s walk toward a world free of women’s cancers.

Game Jam 42!

42 hours,?1 game! The students of 42 Antananarivo are taking on a thrilling challenge to design and develop a full video game in just 42 hours.

After an intense weekend, participants showcased the games they created around the Halloween theme and their creativity, perseverance, and teamwork impressed us.

Our colleagues participation on a panel discussions hosted by the IRA Chair at ESCP Business School.

“Africa is an innovation lab where the future of responsible business models is being shaped.”

This key message was highlighted during the panel hosted by the IRA Chair at ESCP Business School, supported by Axian Group, on "New Responsible Business Models & Career Pathways in Africa."

Our colleagues Stéphane Oudin (Advisor to the Chairman and Board Member) and Marine Raelison (Brand Portfolio and Strategy Director) participated in the panel discussions emphasising the crucial role of Africa's youth and dynamism as drivers of transformation to address global challenges.

At Axian Group, we believe that inclusive and responsible development, driven by local talent, is essential to building a sustainable and positive future for both Africa and the rest of the world.

*IRA: Responsible Innovation in Africa