The Old Mutual Infrastructure Investment Trust Fund, a subsidiary of Old Mutual Malawi is set to acquire a 25% stake in the Golomoti JCM Solar Corporation Ltd, the special purpose entity which owns the 20MW Golomoti solar plant located in Dedza District of Malawi.
Old Mutual Malawi will acquire the stake from InfraCo, a Private Infrastructure Development Group (PIDG) subsidiary. The two parties signed a Sale Purchase Agreement last month, with the deal set to be finalised in August 2025.
The Golomoti solar power plant was commissioned in 2022 and was built by Canadian independent power producer, JCM Power. The power plant has a 5MW Battery Energy Storage System (BESS). At the time of commissioning, Golomoti’s BESS was the first grid-connected, utility-scale hybrid solar BESS in sub-Saharan Africa.
Acquisition to boost investment in renewables in Malawi
According to Old Mutual Malawi, the acquisition will be beneficial in reducing foreign currency exchange risk on the project whilst attracting future investment into Malawi’s renewable energy sector.
“The completion of the transaction marks an exciting milestone within Old Mutual (Malawi)’s strategy, which includes investing in renewable energy, as part of its responsible investment philosophy. It further demonstrates a mutually beneficial strategy, where investors can expect solid returns from non-traditional investments, with significant economic and social impact, as the country seeks to expand and diversify energy generation,” reads a statement by Old Mutual Malawi.
InfraCo was also involved in de-risking the initial phases of the project to the point of viability, paving the way for Old Mutual’s Infrastructure Trust Fund to invest, allowing for local participation in sustainable projects in partnership with experienced players, such as JCM Power.
As part of the deal, JCM Power is expected to continue to operate the Golomoti Solar plant. Old Mutual Malawi will appoint a director to the special purpose entity, Golomoti JCM Solar Corporation Ltd.
“We use our public funding to de-risk infrastructure projects, working with private sector partners to develop them to the highest standards of health, safety, environmental and social governance, and business integrity; just as we have done here in Malawi together with JCM Power,” said Ravi Dhanani, PIDG Senior Asset Manager for InfraCo.
“We then seek to sell our stake in these profitable assets to reputable investors such as Old Mutual Malawi – enabling us to recycle our funding into the development of new, climate-resilient infrastructure across Africa,” concluded Dhanani.
