MCB supports Omnicane in launching a hydropower plant in Rwanda

Background

On June 26, the Mushishito-Rukarara hydropower plant was inaugurated in the Nyamagabe district of Rwanda, marking another milestone in Omnihydro’s efforts to expand sustainable energy solutions in Africa. As a subsidiary of Omnicane, Omnihydro has been at the forefront of green innovation, and this latest project underscores the group's commitment to renewable energy.

For MCB, participating in this impactful initiative was a natural choice, as it aligns with the bank’s vision of supporting sustainable development in Africa. Through tailored financial solutions, MCB played a critical role in bringing this project to life, showcasing Mauritian expertise on the continental stage.

MCB’s Strategic Role

The Mushishito-Rukarara hydropower plant is a valuable addition to Rwanda’s energy landscape. With a national electrification rate of 65% and an average per capita energy consumption of just 40 kWh, Rwanda continues to expand its renewable energy sources. The country’s energy mix now exceeds 75% renewables, and the new plant contributes an additional 26.5 GWh annually. “This may be considered a small project, but it brings significant added value to the country’s electricity supply at a relatively low cost compared to other energy sources,” explains Kevin Padiachy, Head of Africa Desk at Omnicane Management & Consultancy Limited.

What makes this project unique is its dual-source design: it draws water from two separate rivers—Mushishito and Rukarara. The latter is officially recognized as the most distant source of the Nile. The two streams merge at a common powerhouse, generating electricity before the water is returned to the rivers, ensuring a fully renewable and environmentally neutral operation.

To realize this ambitious project, MCB provided structured debt financing of $20.3 million as part of the total project value of $32 million. “Our priority was to structure the financing to meet the project’s specific needs, but our involvement extended well beyond that,” says Aldo Sydonie, Senior Relationship Manager at MCB’s Corporate and Institutional Banking department. “We provided continuous support throughout the project’s lifecycle, assisting with key elements such as EPC contract due diligence and environmental impact assessments.”

Kevin Padiachy confirms, “The MCB team’s support went beyond financing—they advised us on several critical aspects, ensuring a smooth execution.”

Challenges and Solutions

Like any large-scale infrastructure project, the Mushishito-Rukarara plant faced significant challenges. “There are always unforeseen circumstances to manage on-site,” says Padiachy. “We were operating in a new country during a pandemic, facing unexpected recruitment needs, supply chain disruptions, and rising freight costs due to container shortages. Being a landlocked country, Rwanda required multiple convoys to transport materials, adding further complexities.”

These issues led to unexpected costs, but MCB’s flexibility and financial agility ensured that necessary funds were made available. “MCB’s responsiveness was invaluable in overcoming these hurdles,” adds Padiachy.

Aldo Sydonie echoes this sentiment: “Every project faces its own set of challenges. In this case, we were operating in an unfamiliar geography and navigating through a global pandemic and severe flooding. However, the strong collaboration and determination of Omnihydro and MCB teams ensured the project’s success.”

Results and Future Prospects

The Mushishito-Rukarara hydropower plant is more than just a successful project—it’s a model for future green energy initiatives. “This achievement is a source of pride for our entire team, but it’s just the beginning,” says Padiachy. “It has strengthened the trust between our board and partners, opening new opportunities for renewable energy projects across Africa.”

Aldo Sydonie concludes, “We extend our congratulations to all teams involved—MCB, Omnicane, and our project partners. This initiative aligns perfectly with MCB’s commitment to sustainability and carbon neutrality by 2025. As a bank actively engaged in climate action, financing this project was essential for us. It’s part of a broader movement towards a more sustainable future.”