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Red Sands to bolster Northern Cape grid

Energy

South Africa’s Red Sands battery energy storage project (BESS) has achieved financial close

The 153MW/612 MWh project, led by Globeleq and African Rainbow Energy, becomes Africa’s largest standalone BESS facility to reach the financial close milestone.

It follows the signing of project agreements between both companies and the Department of Electricity and Energy and the National Transmission Company South Africa (NTCSA).

Globeleq and African Rainbow Energy raised approximately around US$300mn in debt financing from Absa and Standard Bank.

Located near Upington in South Africa's Northern Cape, the Red Sands BESS will span approximately five hectares and supply electricity to NTCSA under a 15-year power purchase agreement.

The project includes significant upgrades to Eskom and NTCSA's grid infrastructure and will help ease transmission and distribution congestion in the region.

China Energy Engineering Corporation has been selected as the engineering and procurement contractor, with the BESS technology and long-term service agreement provided by Sungrow, a global leader in inverter and energy storage system solutions.

“Financial close on Red Sands BESS is a pivotal step in delivering Africa's largest standalone battery storage project,” said Globeleq's CEO Jonathan Hoffman.

"With strong backing from Absa and Standard Bank, and support from our public and private partners, we're advancing a more resilient, low-carbon power system.”

Johan Koorts, senior banker, resource and project finance at Absa, said the transaction demonstrates the bank’s commitment to Africa’s energy transition goals and will support the reliability and efficiency of electricity supply in South Africa.

Sherrill Byrne, head of project finance, energy and infrastructure at Standard Bank CIB, added: “This project is set to significantly enhance South Africa's energy requirements and contribute to grid stabilisation."

Globeleq, which led the development and financing process, will manage the project during construction and into operation through a subsidiary, Globeleq South Africa Management Services.

The project was originally developed by African Green Ventures and later acquired by Globeleq in 2023.

Red Sands BESS will be its second utility scale BESS in its renewable portfolio, adding to its 13 solar, wind and hybrid PV plus BESS plants in South Africa, Mozambique, Kenya and Egypt, plus the Menengai geothermal plant, currently under construction in Kenya.

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Summa keen on Africa construction market

Construction

Turkish construction group Summa Turizm Yatirimciligi (Summa) has secured additional funding to help develop various construction projects in Senegal and across sub-Saharan Africa

The company has secured €50mn (US$58mn) in financing from the World Bank’s IFC to develop tourism and urban infrastructure projects across the continent in support of job creation and economic growth.

“We are pleased to have IFC’s support for Summa’s hotel and real estate developments in Senegal and across Africa,” said Selim Bora, chairman of Summa.

“We see this partnership as a foundation for broader collaboration in key sectors such as transportation, sports infrastructure, tourism and energy — areas vital to the region’s sustainable development and economic growth — whereas Summa possesses a deep reservoir of expertise and a strong track record of delivery.”

The loan agreement will help Summa with its working capital and cover capital expenditure needs for construction projects in select countries across Africa.

Established in 1989, Summa’s main focus today is Africa, working across a range of industry sectors and projects including airports, stadiums, hotels, industrial buildings and facilities.

It also works in the construction of motorways, dams, and other infrastructure networks, such as power transmission lines, pipelines, and land reclamation projects.

Current projects include Osvaldo Vieria International Airport in Guinea Bissau and, in the hospitality sector, the new Courtyard Diamniadio hotel in Senegal.

“This investment demonstrates IFC’s commitment to supporting tourism and other urban infrastructure development in African markets,” said Ethiopis Tafara, IFC’s regional vice president for Africa, noting that “these types of investments are essential for driving sustainable economic growth and regional development.”

The combined projects across the region are expected to create more than 2,000 direct and indirect jobs by 2029, while Summa’s operations as a whole will lead to US$225mn in economic value through direct, indirect, and induced effects, the IFC said in a statement.

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BME's Dryden Innovex manufacturing plant outside of Delmas, Mpumalanga in South Africa (Image source: BME)

Mining

BME has outlined its commitment to sustainable mining by incorporating used oil, a hazardous waste, as an ingredient in emulsion explosives

“Through our scientifically rigorous processes, we convert a waste product into a sustainable energy source that can break ground to meet the demands of mining while also promoting environmental sustainability and socio-economic development,” said Sachin Govender, used oil manager at BME.

“Used oil is a major environmental risk. Just one litre can contaminate about a million litres of South Africa’s scarce water resources.”

By consuming up to 20% of all the country’s used oil for the production of emulsions, BME helps to effectively mitigate this risk – while also helping to uplift local communities from where it sources the used oil.

The company utilises used oil as a bioenergy fuel source that is completely consumed in the blasting process — a system it has honed and refined over three decades.

The well-developed and accurate formulations comply with safety regulations and adhere to the company’s ESG goals, said Govender.

He said that while used oil was readily available as it was a waste product, there were various grades, all containing different contaminants and components.

“Therefore, all of the used oil that we collect and process undergoes extensive verification, quality control analysis and validation at our R&D laboratory,” he said.

“The final emulsions that we produce using these technologies are also quality tested to determine their stability, shelf life and efficiency for mining.”

He confirmed that BME was also investigating viable alternatives to traditional used oil.

This would not only enable the company to further pursue greener and more sustainable sourcing, but would also increase its participation in the circular economy.

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African Development Bank funds feasibility for Rwanda’s US$100mn cable car to improve urban transport access. (Image source: AfDB)

Logistics

The African Development Bank (AfDB) has approved a US$500,000 grant to fund a feasibility study for Kigali’s proposed aerial urban transit system, set to become sub-Saharan Africa’s first cable car network

The initiative is being spearheaded by Ropeways Transit Rwanda Ltd (RTRL).

The funding comes from the Bank’s Urban and Municipal Development Fund (UMDF) and will support the development of the Kigali Urban Cable Car Project. Valued at US$100mn, the 5.5 km transport solution is designed to alleviate traffic congestion, cut greenhouse gas emissions, and improve access to jobs and essential services for underserved communities.

Hosted by the African Development Bank, the UMDF provides technical assistance and financial support to cities, helping them identify and prepare investment-ready urban projects.

Phase 1 of the project will cover two main routes: from Nyabugogo Taxi Park to the Central Business District, and from the Kigali Convention Center to Kigali Sports City, passing key landmarks such as Amahoro Stadium, BK Arena and Zaria Court.

The feasibility study aims to attract international investment, potentially through platforms such as the Africa Investment Forum (AIF). UMDF has previously supported Rwanda’s Kigali Urban Transport Improvement Project to enhance investor confidence in the transport sector.

Construction is expected to begin in late 2026, with commissioning planned for 2028. Once operational, the system could carry over 50,000 passengers daily on a 15-minute end-to-end journey, fully integrated with Kigali’s broader transport network.

African Development Bank Group president Dr. Akinwumi Adesina said, “This transformative project aligns perfectly with the Bank’s vision for sustainable, green climate-resilient urban mobility infrastructure, and with the Bank’s Ten-Year Strategy, which focuses on urbanisation, and the Alliance for Green Infrastructure in Africa (AGIA), a global partnership initiative driven by the African Development Bank Group, Africa50 and the African Union. By financing Rwanda’s urban cable car system, we are investing in a scalable model of low-carbon, inclusive public transport that cities across Africa can emulate.”

The project also supports Rwanda’s climate targets, as outlined in its Green Taxonomy, E-mobility Strategy and Climate and Nature Finance Strategy, aiming to cut emissions by 38% by 2030 and reach carbon neutrality by 2050.

The cable car project will be implemented under a Public-Private Partnership (PPP), according to Imena Munyampenda, Director General of the Rwanda Transport Development Agency.

The feasibility phase will draw insights from successful cable car systems in cities like La Paz, Bolivia and Singapore, and will incorporate inclusive design principles for disabled access and employment opportunities for women, low-income groups, and youth.

Blended financing model

The project’s US$100mn financing will include grants, concessional loans, blended capital, and technical assistance. The UMDF grant will specifically support assessment of the viability gap. The Rwandan government will partner with the African Development Bank Group and others including IFC, Africa50, TDB, AFC, and private investors under the AGIA to structure blended and commercial finance.

South Africa has entered into a US$1.5bn loan agreement with the World Bank to support the revitalisation of its transport and energy infrastructure and stimulate economic recovery, the National Treasury announced recently

For over ten years, Africa’s most industrialised economy has faced stagnation, hindered by ongoing power outages that have reduced productivity and deteriorating rail systems and port congestion that have impacted key industries like mining and automotive manufacturing.

The government expects the loan to help alleviate transport constraints and bolster energy security, although it has not disclosed which specific projects the World Bank funds will support.

The loan is expected to help manage the country’s rising debt-service burden by offering more favourable conditions than those available in commercial markets, including a three-year grace period.

State-run utilities Eskom and Transnet, responsible for energy and transport respectively, have faced long-standing operational and financial difficulties, contributing to the country’s sluggish growth, which stood at only 0.1% in the first quarter.

The Treasury stated that the interest rate on the 16-year loan from the World Bank is the six-month Secured Overnight Financing Rate plus 1.49%.

This facility is distinct from another US$500mn in funding that the World Bank Group is considering to help mobilise private investment in South Africa’s electricity transmission infrastructure, which needs to be expanded to accommodate more renewable energy projects.

Last month, Finance Minister Enoch Godongwana outlined a budget that includes over 1 trillion rand (US$55.5bn) in investment across sectors including transport, energy, water and sanitation, aimed at driving growth and improving public services.

It aimed for public debt to peak at 77.4% of gross domestic product in the current fiscal year, slowly declining after that.

Jumia opens 27,000 sq m smart warehouse to boost Egypt e-commerce logistics

Manufacturing

Jumia, Africa’s leading e-commerce platform, has taken a significant step in reinforcing its presence in Egypt with the inauguration of a new integrated warehouse on Suez Road, Cairo

This development marks one of Jumia’s largest investments in the country and demonstrates its continued confidence in Egypt’s strategic role in Africa’s economic and logistical landscape.

Spanning over 27,000 sq m, the new facility is designed to optimise Jumia’s logistics capabilities by improving storage efficiency and speeding up deliveries, particularly to Upper Egypt. The warehouse is equipped with advanced smart systems that enhance order processing and customer satisfaction. As a key component of Jumia’s logistics infrastructure, the centre supports the company’s future expansion and aims to better serve merchants and consumers across the country.

This investment aligns with Jumia’s mission to boost Egypt’s digital economy and enhance its service offerings. It will also provide tailored logistics solutions for local manufacturers and merchants, reinforcing the platform’s support for domestic production.

The warehouse is projected to generate up to 10,000 direct and indirect jobs over the coming years, solidifying Jumia’s contribution to national economic development and youth empowerment.

Prime minister Dr Mostafa Madbouly commended the initiative, remarked, "We welcome this move by Jumia, which reflects the trust that major global companies have in Egypt’s investment climate. We look forward to more partnerships that support the state's goals in digital transformation, the development of logistics infrastructure, and the provision of job opportunities for Egyptian youth."

Abdel Latif Olama, CEO of Jumia Egypt, expressed his appreciation for the government’s support, stated, "We are proud of this achievement, which reflects Jumia’s long-term investment commitment in Egypt. We view Egypt as a strategic hub for our operations in the region. This warehouse represents a qualitative leap in the level of services we provide to our customers and partners, and it supports our vision of becoming an integrated platform that combines technology and logistics across the continent. It will also contribute to our growth in the Egyptian market."

Egypt also plays a critical role in Jumia’s tech ecosystem, hosting one of its largest technology hubs on the continent. This centre is home to a skilled team of engineers and developers who are building digital tools and logistics solutions to support operations across Africa.

During the inauguration, Olama delivered a presentation detailing Jumia’s impact in both Egypt and broader African markets. He also outlined plans for future expansion, reaffirming Egypt’s strategic importance to the company.

The launch of this facility is part of Jumia’s wider expansion strategy aimed at strengthening its infrastructure across Africa. Similar logistics centre s have already been established in Nigeria, Ghana, Ivory Coast, and Morocco, reinforcing the company’s role in advancing digital commerce and economic development across the continent.

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