Bujumbura, Burundi - African Trade and Investment Development Insurance (Atidi) has announced its backing for the pioneering $7.7 million Ruvyironza Hydropower Project in Burundi, offering a significant political risk insurance cover. This initiative marks a crucial step in bolstering the nation's renewable energy sector and enhancing access to electricity.

The Ruvyironza project, spearheaded by Songa Energy in collaboration with Virunga Power, introduces a 1.65 megawatt (MW) run-of-the-river facility, setting a precedent as the first hydro Independent Power Producer (IPP) to connect to Burundi's national grid. This follows the 7.5 MW Upper Mulembwe solar project, also insured by Atidi, underscoring a growing commitment to renewable resources in the region.

Construction of the hydropower plant commenced in May 2023, with expectations to initiate commercial operations by year-end. The project, financed by Virunga Power, renowned for their expertise in renewable energy ventures and rural grid development, is part of a broader strategy to produce over 10 MW from two hydropower installations.

Atidi, established by the Common Market for Eastern and Southern Africa (Comesa) in 2000, plays a pivotal role in mitigating investment and political risks, thereby encouraging foreign direct investment across Africa. The insurer's involvement in the Ruvyironza project aligns with its mission to support sustainable development initiatives, particularly those aimed at achieving Sustainable Development Goal (SDG) 7 – ensuring universal access to affordable, reliable, and modern energy services.

Burundi's energy sector, with less than 15% of its population having electricity access, stands to gain immensely from this venture. The generated power will be supplied to the national utility, la Régie de Production et de Distribution de l'Eau et de l'Electricité (Regideso), under a 25-year Power Purchase Agreement (PPA), facilitated through a newly constructed 2.4km transmission line.

This landmark project not only propels Burundi towards a sustainable energy future but also exemplifies the significant impact of collaborative efforts between governments, private sector entities, and insurance underwriters in transforming the African energy landscape.