160 MW Solar farms
supporting the sustainable development of the Zanzibar archipelago
A nations stability creates a land of opportunities
Development and Transformation of Energy Infrastructure in Tanzania and Zanzibar
Welcome to a unique opportunity that combines robust business prospects with the pursuit of large-scale social and environmental sustainability. Tanzania and Zanzibar are on the brink of a significant energy transformation, with an ambitious target to achieve 75% electricity reliance by 2035. This goal is a testament to the nation's developmental ambitions and a strategic plan to leverage its abundant solar energy resources.
With a population of 62 million and a healthy GDP growth rate of 6%, Tanzania is perfectly positioned for this infrastructure overhaul. Reliable energy access is crucial for both the population and businesses, ensuring sustainable economic growth and development. Join us in this journey towards a brighter, sustainable future for Tanzania and Zanzibar.
Partnership and Investment Opportunities
The primary barrier to larger investments in Africa is the perceived risk of loss. OMOcean addresses this by forming genuine partnerships with the people of Zanzibar and Tanzania, ensuring local ownership and by an offensive reinvestment strategy, become a valuable partner in the transition. By maintaining stability and focusing on a long-term strategy with a significant Internal Rate of Return (IRR), OMOcean reduces investment risks. The commitment to reinvesting profits and creating steady jobs, along with contributions to social causes via the OURSUN Foundation, positions OMOcean as a valuable partner for both investors, administrations, consumers, and employees.
OMOcean will be established as a Zanzibar company under commonwealth law, as a Limited Liability Company, owned partly by a group of Zanzibar citizens, consultants and entrepreneurs in the construction industry and partly by Scandinavians. The construction calls for ability to ride eventual political risk factors.
As Tanzania transitions its energy infrastructure, the nation faces a pivotal choice: allow foreign investors to reap the benefits or develop national businesses to drive this transformation.
OMOcean stands ready to be a leader in this change.
Challenges
Developer Reluctance: Despite Tanzania’s stable democracy, it is often mistakenly perceived as too unstable or economically weak to attract solar power developers. This misconception is a significant barrier to investment.
Infrastructure Readiness: Many areas lack the necessary infrastructure to support large power plants, creating logistical challenges for expansion.
Economic Viability: With low energy consumption and economic struggles, Tanzania doesn’t typically attract traditional investors looking for stable and lucrative opportunities. This economic paradox stifles growth as potential investors are wary of financial risks.
Solutions
Local Investment and Reinvestment: Outsourcing energy capacity construction isn’t viable. Developers with significant capital often focus on their returns, leading to profit repatriation. Instead, building local capacity for investment, construction, and operation of power plants ensures that capital stays within the country, fostering growth. OMOcean, a Zanzibar-based company, exemplifies this approach by reinvesting aggressively and maintaining an engineering and construction team. Distributing only 10% of turnover to shareholders ensures that surpluses are retained and reinvested domestically.
Infrastructure Development: Feasibility studies indicate significant progress in preparing for expanded capacity. The initial phase includes constructing four 40 MW plants, supported by the current grid. As OMOcean scales to the planned 560 MW, the company will collaborate with local administrations to ensure infrastructure readiness for future expansions.
Economic Promise: Despite low current consumption, energy prices in Tanzania are on par with Danish levels, and there is a substantial demand for more power. The promising financial returns from the first 40 MW plant bolster OMOcean’s credibility. The OURSUN Foundation, to be established by OMOcean, will channel up to 25% of turnover into healthcare, education, infrastructure, preservation, and entrepreneurship. As OMOcean grows, the foundation's contributions will significantly impact local development, stimulating economic growth and increasing energy consumption.
Opening
OMOcean Energy will open office in Stonetown Zanzibar in February 2025 thereby initiating a process towards the construction and driving of 160 MW solar power plants.
A contract and a significant milestone
A contract with the autonomous administration of Zanzibar is scheduled to be signed and the signing will take place in Stone Town, Zanzibar the last week of January 2025. The contract will be the framework for a partnership that will create more than 100 regular jobs, build capacity for large-scale re-investments in the energy industry, and help achieve Tanzania’s 2035 goals.
Proceedings of the plants results will be re-invested in expansions and new plants. After first milestone, 160 MW power plants on Zanzibar, OMOcean has a milestone for 2032 of additional 400 MW in mainland Tanzania, aiming for a total of 560 MW in 2032.
Through the OURSUN FOUNDATION, OMOcean plans to support critical sectors such as healthcare, education, infrastructure, and environmental conservation, with an increasing annual donation target in 2032 exceeding 25 million USD, thereby positioning itself as a valuable partner to both the Zanzibar and Tanzanian governments.
2832
OMOcean 2028/32 Milestones
OMOcean Energy has outlined specific milestones to be achieved by 2028 and 2032, focusing on scaling up their operations and supporting Tanzania's objective of reaching 75% electrification by 2035. The key goal is to position OMOcean as a premier developer and operator of solar power plants in Tanzania, thereby playing a crucial role in enhancing the nation's energy infrastructure.
2028 Target
By 2028, OMOcean aims to have constructed 160 MW of solar power plants in Zanzibar. This objective demands precise planning and the implementation of just-in-time (JIT) principles due to logistical challenges. For instance, the infrastructure on Pemba Island, the second-largest island in the Zanzibar archipelago, limits the volume of shipments, accommodating only up to 55 containers (each 40 feet) at a time—sufficient for a 10 MW solar plant. The construction phase, spanning from 2025 to 2028, promises significant financial benefits and organizational growth. OMOcean plans to be self-financed, with the first year's turnover being reinvested. From an operational perspective, this gradual pace will help build a lean organization where team members are well-acquainted with each other and their roles.
2032 Target
Looking ahead to 2032, OMOcean plans to expand its capacity to 560 MW, with 100 MW being constructed annually over four years. Starting from zero in 2025, OMOcean will have gained the financial and operational strength to accelerate the pace of construction. The organization will be prepared for this growth, with an additional 30 construction workers joining the team. Despite the costs of paying interest and principal, the reinvestment power will be substantial. Achieving the 560 MW target by 2032 is realistic, and new goals will be set beyond this milestone.
The 20/32 milestones reflect OMOcean’s strategic approach to managing logistical challenges and ensuring timely delivery and construction of solar power plants, thereby driving Tanzania’s transition towards a more electrified and sustainable future.
For details on investment opportunities and documentation
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