RMB arranges and funds the consolidation of four renewable energy groups to create iThokazi, one of SA’s largest 100% black-owned renewable energy producers.
The challenge
South Africa has a marked need for more 100% black-owned independent power providers (IPPs) in the renewable energy sector, not only to grow transformation but to improve competition and development within the sector on a national level.
The RMB solution
RMB brought together four existing BEE entities—Usizo, Enzani, Winners Circle and J&J—to pool their assets and capabilities to form a unique new entity in the renewable energy sector: iThokazi.
The merger of these black-owned engineering businesses was facilitated through RMB arranging and providing a ZAR310-million preferential share facility. In addition, the transaction allowed the BEE shareholders to upfront a portion of their future returns for reinvestment into their engineering and construction businesses.
Proven results
As an IPP, iThokazi now owns shares in eight projects—two wind farms and six solar photovoltaic projects—capable of generating a combined 300 megawatts of renewable energy.
iThokazi is also a first-of-its-kind entity in that each of the companies merged all provide complementary engineering services to the renewables sector. This means that iThokazi delivers not only black ownership within the sector but also creates a BEE entity that is able to offer black-owned engineering services and advance further empowerment initiatives within the renewable energy sector.