Strive Masiyiwa’s Distributed Power Africa terminates power lease deal with Nyanza Light Metals

Strive Masiyiwa’s Distributed Power Africa (DPA) has canceled a power lease contract with South Africa’s Nyanza Light Metals (NLM), a titanium dioxide manufacturer.

DPA is a subsidiary of Econet Group.

TechZim quoted DPA CEO Norman Moyo as saying that the company terminated the contract due to delays at Nyanza’s Richards Bay facility, which is under construction.

DPA has solar projects in South Africa, Kenya, Zambia, DRC, Togo, Ivory Coast and Zimbabwe.

In August 2020, DPA signed a contract with Nyanza Light Metals to construct a 10-MW solar plant that would generate power to the NLM facility at the Richards Bay Industrial Development Zone in South Africa’s KwaZulu Natal Province. This would enable the plant to produce titanium dioxide pigments seamlessly.

The pigments are used in paint, plastic, cosmetics, ink, and dye.

The contract was made under a phased power lease agreement, guaranteeing zero risks, which aligns with DPA’s policies. The company is renowned for providing customers with solar power solutions at no upfront investment. The deployment of the 10-MW plant was expected to meet nearly half the manufacturer’s 22-MW energy requirement.

However, with the lease agreement withdrawn, both parties have the right to renegotiate critical aspects of the project once the construction is finished. This will help to facilitate the deployment of crucial energy solutions required to power the plant, Moyo said.

The Richards Bay plant is designed to be the most extensive solar power system built by DPA for a commercial and industrial customer in South Africa.

What you should know about Nyanza Light Metals

Nyanza Light Metals is a 21st-century chemical production company and a manufacturer of titanium dioxide pigments and other co-products such as gypsum, aluminum and ferrous sulfate. Its corporate head offices are in Sandton in Johannesburg.