Corporate and investment bank RMB has partnered with independent power producer (IPP) Sturdee Energy to help it grow its business in the Southern African renewable energy sector.

RMB says its equity investment in Sturdee will give the IPP the firepower to further build out its immediate pipeline of 175 MW and position it to deliver flexible power purchase agreements to target the increasing liberalisation of the sub-Saharan Africa electricity markets.

The bank will work to aid in growing Sturdee's footprint in South and sub-Saharan Africa, with the ultimate goal of helping Sturdee become a prominent South African-owned IPP in the region.

“RMB came into the deal as a financial partner with a keen interest in helping Sturdee achieve its vision. We have an ongoing relationship with Sturdee, having supported it in a number of bids in the private power space in South Africa, and we look forward to partnering with them as they expand in this sector.

"Long term, our investment will continue to deepen as we work together to build out additional projects,” says RMB Infrastructure Sector Solutions senior transactor Pranisha Sahadeo.

RMB points out that Sturdee needed an Africa-focused investor to support its sub-Saharan Africa growth strategy and says the bank, as a leader in the infrastructure sector with the capability and mindset to be an effective partner on this journey, is the ideal fit.

Sturdee’s vision for the business is aligned with that of RMB, and the existing funding relationship, alongside the experience of Sturdee’s founding partners in the industry, helped to conclude the arrangement.

With RMB supporting Sturdee, it now has the ability to help solve the need for renewable energy by scaling up projects quickly to relieve pressure on existing infrastructure. Not only will this improve power exported into the grid, but it will also create jobs and help stimulate further foreign investment into the country.

“We are committed to being an integral part of resolving South Africa’s energy challenge. The private power market is an attractive investment prospect in South Africa, and this was an ideal opportunity for us to partner with an IPP and team with a wealth of experience that has the capability and pipeline to be a more significant participant in the sector.

"We believe that, together with Sturdee’s management team, we can further cement Sturdee’s position as a meaningful player in the market,” RMB Principal Investments transactor Sarah Bastiaanse says.

The bank notes that the partnership with RMB has also been welcomed by Sturdee's existing shareholder African Infrastructure Investment Managers, which is a division of Old Mutual Alternative Investments through its IDEAS Fund.