Exclusive: Chad electrical EPC firm ZIZ Energie in funding talks

 Exclusive: Chad electrical EPC firm ZIZ Energie in funding talks

Chad-based ZIZ Energie Ltd is in talks to raise fresh funding from at least two of its existing backers that may help it expand the electrification project pipeline in the country, The Capital Quest has learnt.

ZIZ Energie, which is based in Chad’s capital N’Djamena, was established in 2006 by engineer Ibrahim Zakaria. It is in talks with Aster Capital and Dutch development financial institution FMO for the funding.

While Aster Capital-managed Energy Access Ventures Fund may pitch in with $2.5 million, FMO could bring as much as $3.5 million.

An email query to ZIZ Energie seeking to know whether it is raising a larger round and if there are any additional investors did not elicit a response till the time of publishing this report.

Energy Access Ventures, a fund sponsored by European giant Schneider Electric, didn’t respond to an email.

An FMO spokesperson said it is looking to invest in addition to what it committed last year.

The Dutch DFI had invested $500,000 last November in ZIZ. It had co-invested along with the Energy Access Ventures Fund, which had chipped in with $1.5 million.

FMO is also one of the Limited Partners for the Energy Access Ventures Fund. The UK’s CDC Group Plc, French DFI Proparco, the French Facility for Global Environment, the European Investment Bank and the OPEC Fund for International Development are among the other LPs.

The Energy Access Ventures Fund is investing out of its maiden €75 million debut vehicle. It has been investing for almost six years now, having backed over a dozen companies including several in Kenya.

ZIZ would be one of the last new portfolio companies for the fund. Its portfolio companies include Zola Electric (formerly Off-Grid Electric), PEG Africa, d.Light, Inspirafarms, SunCulture, PayGo Energy, Solararise Africa, Palgo, Candi Solar, Nuru (formerly Kivu Green Energy), Mawingo Networks and Zonful Solar Energy.

ZIZ started off as an electrical engineering, procurement and construction (EPC) company. It later diversified into rural and urban electrification, electrical equipment distribution, and EPC and energy services for commercial and industrial clients. Besides its home country, ZIZ has a presence in North Cameroon, where it provides electrification services.

It has in the past operated diesel-powered sites in several towns in Chad. It is also developing larger ‘metro-grids’ by hybridizing these sites through solar and energy storage to extend their distribution network and increase population coverage and operating hours.

The Capital Quest