Kibo Energy #KIBO – Letter to Shareholders

Letter to Shareholders

Dear Shareholder,

Since 2018, we have worked hard to reposition the business as an energy company and to this end we have built a solid portfolio of four major projects.  However, as this portfolio has evolved and new technologies have advanced, so too has our strategy.  I have touched on this several times in past correspondence, but increasingly, we have recognised the importance of sustainability to create positive environmental and social impacts.  With this in mind, we have grasped the nettle and are steering our strategy towards taking a considered, responsible approach to providing energy solutions.

It goes without saying that the African Continent is in dire need of reliable, modern, affordable and sustainable energy given its rapid economic and population growth.  As highlighted in a report by the International Energy Agency, today some 600 million people do not have access to electricity and around 900 million people lack access to clean cooking.  

In the short to medium term, clean coal projects must continue to play a key role in providing power to help fill the immediate needs given it is still the cheapest, most reliable electrical energy source.  However, it is imperative in the mid to longer term to deliver sustainable power projects.  Kibo has taken on this challenge and aims to lead from the front, integrating renewable technology with the traditional base load generation solutions in a practical and affordable manner.

Accordingly, we continue to advance three utility-scale power station projects in Africa, designed to provide cost-effective, long term sustainable base load power. Positioned to tap into the Southern and East African Power Pools in Tanzania, Botswana and Mozambique, these projects will collectively add a significant percentage of the total current energy supply, of which more than half is attributable to South Africa.  Meanwhile, in the UK our 60% owned subsidiary, MED, remains on track to commission its inaugural flexible power site, Bordersley.   

I look forward to updating shareholders regularly as we progress these projects in tandem with our blue-chip international partners and provide further details on how new technologies we are will be incorporated into their development plans and become a crucial component in delivering Kibo’s growth ambitions in a sustainable manner.

I believe that 2020 is going to be an exciting year for Kibo as we look to deliver on the energy needs of the present without compromising future generations. 

Louis Coetzee

CEO

**ENDS**

For further information please visit www.kibo.energy or contact:

Notes

Kibo Energy PLC is a multi-asset, Africa focused, energy company positioned to address the acute power deficit, which is one of the primary impediments to economic development in Sub-Saharan Africa. To this end, it is the Company’s objective to become a leading independent power producer in the region.

Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project (‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in Botswana; and the Benga Independent Power Project (‘BIPP’) in Mozambique.  By developing these projects in parallel, the Company intends to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement, equipment, human capital, execution capability / capacity and project finance.

Additionally, the Company has a 60% interest in MAST Energy Developments Limited (‘MED’), a private UK registered company targeting the development and operation of flexible power plants to service the UK Reserve Power generation market.