Clean energy projects in Africa will be among the major beneficiaries of new funding after two major African institutional investors combined assets in a joint venture worth $3.3bn.
Harith General Partners and Africa Finance Corporation (AFC) merged power sector assets, expertise and experience to create a new energy entity that will cover renewable and non-renewable power generating assets in Africa.
The joint venture will bring together AFC’s interests in Cenpower, which include the Kpone power station under construction in Ghana, and Cabeolica, a wind farm that provides 20% of Cape Verde’s energy needs.
These will be merged with those of the Pan Africa Infrastructure Development Fund (PAIDF), which is managed by Harith.
Harith’s portfolio includes the Azura Edo thermal power project in Nigeria, the Lake Turkana Wind Power in Kenya, Kelvin Power Station in South Africa and the Rabai Thermal project in Kenya.
In a statement the companies said: “The new venture will be in a position to... significantly [reduce] the lead time to bringing power projects to fruition.
“It will also have the benefit of a team of dedicated advisers that bring a wealth of development and operational experience in the African power sector.”
Tshepo Mahloele, CEO of Harith, said: “The purpose of the proposed merger is to... create an African power entity that will have substantial capital, sector specific experience, a critical mass of existing assets and a pipeline of credible power projects.
“The timing could not have been better as the power sector in Africa presents very attractive investment opportunities and the growth in this sector is expected to continue exponentially.”
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