Botswana is launching the 100-megawatt Tati Solar Project, the country’s first large-scale solar development, backed by a $100 million financing package arranged and underwritten by Rand Merchant Bank, a subsidiary of South Africa’s FirstRand. The project is being developed by Etavi Renewables and Shumba Energy, with commercial operations anticipated to begin in 2027.
The development marks a significant departure for Botswana, a country that has historically contended with electricity shortages driven largely by ageing coal infrastructure and supply limitations. Rather than catering exclusively to domestic consumers, the project is designed to sell electricity into the Southern African Power Pool, one of Africa’s most sophisticated regional electricity trading systems, serving approximately 360 million people across 12 countries through cross-border power trade.
For Botswana, participation in this regional market carries the potential to generate new revenue streams and enhance the country’s standing within the Southern African energy sector. RMB executives say the deal underscores growing investor confidence in utility-scale renewable projects that succeed on a merchant basis — selling power into regional markets rather than relying solely on government-backed power purchase agreements — a model that could serve as a blueprint for future renewable investment across the continent.
The Tati Solar Project is being closely watched as a test case for investor confidence in market-driven renewable developments in Africa, with its success potentially encouraging further private-sector investment in renewable infrastructure as the region increasingly focuses on energy security, sustainability, and cross-border power trade.
Source: The Voice of Africa