South African start-up raises $1.4 million in crowd sale of Zimbabwe solar project

Alma Metals

31/03/2021 17:38

JOHANNESBURG, March 31 (Reuters) - South African energy
start-up Sun Exchange raised $1.4 million in a crowd sale of
solar cells of a 1.9 megawatt (MW) solar and battery storage
facility at Zimbabwe's Nhimbe Fresh farm, the firm said on
Wednesday. 
    Investors were invited to purchase individual solar cells in
the project. In exchange, they will earn a rental income in
cryptocurrency from the electricity generated. 
    Sun Exchange said the crowd sale attracted more than 1,700
individuals buyers.
    Nhimbe Fresh is one of Zimbabwe's biggest fruit and tobacco
producers. The solar project is part of its plans to power its
entire operation, including cold store and packhouse facilities,
through solar power.
    Frequent power cuts in Zimbabwe, which in some parts of the
country lasted up to 18 hours, have prompted a number of
businesses to seek cheaper and more reliable sources of energy.
Nhimbe said the scheme could cut its overall energy cost by up
to 60%. urn:newsml:reuters.com:*:nL8N24X7EO
    Sun Exchange investors in the solar farm will earn a monthly
income stream for 20 years, with an estimated internal rate of
return (IRR) of 16.71% in South African rand terms, the firm
said.
    "This is the highest earning potential of any solar project
run through the Sun Exchange platform to date," Sun Exchange
said in a statement. "To mitigate risk of local currency
fluctuations, solar cells will be leased to Nhimbe Fresh at a
USD-pegged fixed price." 

 (Reporting by Mfuneko Toyana
Editing by Bernadette Baum)
 ((mfuneko.toyana@thomsonreuters.com; +27117753153; Reuters
Messaging: mfuneko.toyana.thomsonreuters.com@reuters.net))