Two Africa-based institutional investors have merged their power assets to create a new energy entity equipped with substantial capital, sector specific experience, a critical mass of existing assets and a pipeline of credible power projects.
Harith General Partners and Africa Finance Corporation’s (AFC’s) new joint venture (JV) unlocked a combined $3.3-billion portfolio of gross operational and under-construction capacity in excess of 1 575 MW and supplying power to over 30-million people across ten African countries.
“This will enable the JV to expeditiously develop quality, cost reflective, yet profitable, power projects that will benefit Africans – both power users and investors alike,” said Harith CEO Tshepo Mahloele.
The new venture, backed by a team of dedicated, experienced advisers, would be well-positioned to develop and finance projects through corporate finance transactions and project finance and reduce the lead time in bringing power projects online.
“Power is one of AFC’s priority sectors and we dedicate considerable time and resources to driving development here,” said AFC president and CEO Andrew Alli, adding that some $350-million had been invested in the energy sector.
Africa presented “very attractive” investment opportunities with exponential continued growth expected going forward, Mahloele commented.
“As a result of this merger, some of the largest and best structured renewable and conventional electricity projects in Africa during the last decade will now be held within one consolidated JV, alongside the requisite development experience and expertise [as well as] equity capital for similar future projects.”
The assets included AFC’s interests in the currently-under-construction Kpone independent power project (IPP), in Ghana, and the Cabeolica wind farm, which provided 20% of Cape Verde’s energy needs, as well as those under the Harith-managed Pan Africa Infrastructure Development Fund, including the Azura Edo IPP in Nigeria, Lake Turkana Wind power project in Kenya, Kelvin power station in South Africa and the Rabai thermal project in Kenya.