Africa Green Energy Holdings Business Plan › Section 1 › Executive Summary

1.1 The Opportunity

Africa Green Energy Holdings (Pty) Ltd (“AGEH” or the “Company”) is a
South African renewable energy independent power producer (“IPP”)
established to develop, construct, own, and operate a portfolio of
utility-scale generation and storage assets, totalling 550 MW of
installed capacity, across the Republic of South Africa. The Company is
seeking ZAR 9.0 billion (approximately USD 480 million) in blended
project and corporate financing to deploy a diversified portfolio across
three complementary technologies — 300 MW of solar photovoltaic, 150 MW
of onshore wind, and 100 MW (400 MWh) of grid-scale battery energy
storage — supported by associated transmission and grid-connection
infrastructure.

The Plan is presented to the International Finance Corporation
(“IFC”) and a syndicate of development finance institutions (“DFIs”),
commercial banks, and strategic equity investors at a moment of
structural transformation in South Africa’s electricity sector. South
Africa’s National Treasury, Department of Electricity and Energy, the
Presidential Climate Commission, and Operation Vulindlela have
collectively gazetted the most ambitious infrastructure programme in the
country’s post-apartheid history: the Integrated Resource Plan 2025
(“IRP 2025”), which mandates the procurement of 105 GW of new
electricity generation capacity by 2039 at an investment value of ZAR
2.23 trillion (approximately USD 128 billion). Of this, more than 67 GW
is targeted in renewables (34 GW wind, 25 GW solar PV, and 8.5 GW
battery storage), with a further 16 GW in distributed generation. AGEH
is positioned to deliver a meaningful and bankable contribution to that
target.

1.2 Transaction Snapshot

1.3 Investment Highlights

AGEH offers a rare combination of macro-tailwinds, regulatory
clarity, contractual revenue certainty, and ESG alignment that few
infrastructure platforms in emerging markets can match. The five pillars
below summarise the Company’s core investment thesis.

Pillar 1 – Structural Energy Deficit and a Forced Coal Retirement Cycle

South Africa endured its worst electricity crisis in 2023, with
24,638 GWh of load-shedding shed from the national grid, equivalent to
roughly 60 days of complete blackouts. While Eskom’s Generation Recovery
Plan, implemented in 2024-25, achieved 308 consecutive days without
load-shedding by March 2026, the underlying structural deficit remains.
Eskom’s October 2025 Medium-Term System Adequacy Outlook explicitly
warns of a 9.5 GW supply cliff between 2029 and 2030 caused by the
scheduled retirement of ageing coal plants and the expiry of the 1.15 GW
Cahora Bassa import contract from Mozambique. Unless replacement
capacity is procured, the country will revert to systemic load-shedding
by 2029. AGEH’s portfolio is engineered to come online precisely during
this period.

Pillar 2 – Robust Policy Framework and Contracted Demand

South Africa now possesses one of the most sophisticated and
predictable renewable-energy procurement frameworks in the developing
world. The Renewable Energy Independent Power Producer Procurement
Programme (“REIPPPP”) has attracted ZAR 292 billion in investment since
2011, awarded over 12.5 GW across seven bid windows, and produced
133,764 GWh of clean electricity to date. Bid Window 7 alone awarded
3,940 MW of solar PV and 932 MW of onshore wind. AGEH’s pipeline is
structured to participate in REIPPPP Bid Window 8 (anticipated 2027),
the Battery Energy Storage IPP Procurement Programme (BESIPPPP),
corporate Power Purchase Agreements (“PPAs”), and the rapidly expanding
private wheeling market.

Pillar 3 – Compelling Unit Economics

South African renewable energy is now among the cheapest sources of
new electricity globally. BW7 solar PV tariffs cleared at ZAR
0.499–0.514 per kWh — an 86% decline from BW1 levels in 2011. Wind
tariffs have similarly fallen to approximately ZAR 0.50 per kWh. AGEH’s
portfolio modelling delivers a steady-state project IRR of 17.5%, equity
IRR of 22%, and EBITDA margin of 66%, with a debt service coverage ratio
averaging 1.45x — well above lender covenants.

Pillar 4 – Diversification by Technology, Geography, and Offtake

The 550 MW portfolio is intentionally constructed to mitigate the
single-technology, single-region, single-offtaker concentrations that
have characterised many earlier-generation IPPs. Solar PV assets are
anchored in the Northern Cape and Free State (highest solar irradiance,
lowest grid-connection cost); the wind farm is sited in the Eastern
Cape; BESS facilities are co-located to enable hybrid arbitrage. Offtake
is split approximately 60/40 between regulated PPAs (REIPPPP, Eskom,
BESIPPPP) and corporate / private wheeling arrangements — a mix that has
been shown to materially improve risk-adjusted returns.

Pillar 5 – ESG and Climate Impact Alignment

The portfolio is expected to avoid more than 1.1 million tonnes of
CO₂-equivalent emissions annually from 2030 onward, create 2,400
construction jobs at peak and 320 permanent operations jobs, and deliver
R316 million-plus of community trust, supplier development, and
enterprise development spending over the plan horizon. The Plan has been
designed in conformance with all eight IFC Performance Standards, the
Equator Principles IV, and the EU Sustainable Finance Disclosure
Regulation, providing eligibility for climate finance facilities and
green-bond refinancing.

Figure 1.1

Figure 1.2

1.4 Financial Highlights at a Glance

1.5 Use of Proceeds Summary

The blended ZAR 9.0 billion capital raise will be deployed across six
categories of expenditure as illustrated below. Capital deployment is
back-loaded toward construction Years 2 and 3, with peak monthly
drawdown anticipated in Q3 2028.

Figure 1.3

1.6 Strategic Ask

AGEH respectfully requests the following engagement from the
International Finance Corporation and the broader DFI /
commercial-banking syndicate:

• Anchor senior debt commitment of up to ZAR 3.0 billion from IFC
  over a 15-year tenor on terms consistent with the Equator Principles
  framework.
• A dedicated climate finance facility of up to ZAR 500 million,
  drawing on IFC Climate Business and the IFC Catalyst Fund, to support
  the battery storage component.
• Provision of IFC advisory services to underpin the Environmental
  and Social Management System, gender-mainstreaming programme, and
  supplier development plan.
• Co-mobilisation of an additional ZAR 2.0 billion in DFI
  co-financing from peer institutions including the African Development
  Bank, the Development Bank of Southern Africa, the European Investment
  Bank, KfW DEG, FMO, Proparco, and BII.
• Negotiation of a tier-one commercial-bank syndication of ZAR 2.0
  billion led by a South African mandated-lead arranger (Standard Bank,
  Nedbank, ABSA, or RMB).

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Africa Green Energy Holdings (Pty) Ltd.