37.90% return – how is that possible?

We asked this question to CEO and longtime investment banker Ralph Schneider. Before switching from banking to industry in 2003, Ralph Schneider spent more than 20 years working for banks and as a member of the management board of two investment firms. He was also a longtime board member of the investment division (Phoenix Energy Investments) at Phoenix Solar AG, which at its peak had a market capitalization of well over 300 million euros and was listed on the TecDAX.

Ralph, is such a return promise even credible?

Ralph Schneider: First of all, this is not a return promise but an expected return based on projected annual results, potential dividends, and, most importantly, the expected increase in company value by 2030.

Still, 37.90% per year sounds quite high?

Ralph Schneider: We deliberately chose a business model in Africa, the absolute future and growth market. Solar energy on the sun continent Africa will significantly contribute to improving the energy supply and economic growth there. The potential for solar and our business model is enormous.

What makes you say that?

Ralph Schneider: Simple factors. By 2050, Africa’s population will have doubled; more than 600 million people still have no access to electricity; and the economic growth of many African countries exceeds 4% per year. In Ghana and neighboring countries where we operate, even over 6%. That means an additional energy demand of 10–12% per year.

What does that mean for EWIA in numbers?

Ralph Schneider: By 2030, we aim to realize investments totaling 65 million euros. These plants must be built, financed, and operated. That may seem like a large number, but we have the opportunity to electrify up to 80 additional villages in Cameroon alone—that’s an investment volume of 25–30 million euros. And our current project pipeline for Ghana and Nigeria already exceeds 30 million euros. We have just started in Nigeria, and our expansion plans into other countries are not even included yet.

So, you’re expecting a quadrupling of the company’s value by 2030?

Ralph Schneider: 422% sounds like a lot at first. But let’s remember: we started in 2020 with a valuation of under 2 million euros and are now at around 12.3 million euros pre-money—that’s actually a sixfold increase in company value.

How is that possible?

Ralph Schneider: We now manage a company with four operational African subsidiaries and a total of 77 employees, which has already completed 16 projects for companies, 12 villages, and 85 mobile towers. Assuming we raise enough capital for business development, we expect to reach break-even for the group in 2026.

Are dividend payments planned?

Ralph Schneider: We agreed with CONDA to include in the shareholder agreement that 50% of profits will be distributed. As a shareholder, I’m pleased about that, but as CEO, I always view such a rule with mixed feelings.

Why?

Ralph Schneider: My personal goal is to increase company value and growth and to make EWIA a pan-African player within five years. In practice, we need the profits to finance growth and strengthen our equity base. Some shareholders have even set their sights on a sixfold rather than fourfold increase in value.

How will this value increase be converted into cash?

Ralph Schneider: That’s an important point. We assume that in five years we’ll be attractive enough for a strategic investor, or a company sale—at least of a certain share—could be possible. Of course, an IPO is also an option.

Who could be a potential buyer or investor?

Ralph Schneider: I could imagine energy providers, asset managers, or infrastructure investors. Even my former employer, an oil major, is interested in attractive energy-sector investments.

Why should someone invest in EWIA?

Ralph Schneider: Investing in EWIA means investing in one of the major megatrends. I like to tell people: imagine you had invested in wind energy in 2003. Imagine you had invested in Tesla in 2010. Now imagine missing out on the future and opportunity market Africa—and EWIA.

I can still hear the investment banker in you.

Ralph Schneider: Guilty—can’t completely deny it. But my heart beats just as much for ecology and social impact.

Interview conducted by Kai Lehmann from Schwarz Financial

Ralph signing his first major PV deal in 2003 in Hamburg with Shell. Present were the management of Shell, the board of Reconcept, and WKN.