AFC and Harith General Partners merge $3.3bn African power generation assets
Nigeria-based Africa Finance Corporation (AFC) and South African institutional investor Harith General Partners have merged their power generation assets totaling $3.3bn to create a new energy entity in the continent.
The new merged entity will combine assets, expertise, experience, and 1,575MW of renewable and non-renewable power generating capacity of the two firms.
As per the deal, the joint venture will merge AFC's interests in Cenpower, which owns the Kpone independent power project (IPP) under construction in Ghana, and Cabeolica wind farm in Cape Verde with Harith-managed Pan Africa Infrastructure Development Fund (PAIDF).
Harith's assets includes the Azura Edo IPP in Nigeria, the Lake Turkana wind power in Kenya, Kelvin power station in South Africa and the Rabai thermal project in Kenya.
AFC president and CEO Andrew Alli said: "Our new joint venture will make an invaluable contribution to improving generation capacity in countries across the length and breadth of Africa and by working together we can deliver tangible benefit for Africans, switching their lights on and stimulating positive economic growth on the continent."
Additionally, the near-term portfolio of the joint venture is expected to power more than 30 million people in at least 10 African countries.
Harith CEO and Aldwych chairman Tshepo Mahloele said: "The purpose of the proposed merger is to combine the assets of Aldwych and AFC so as 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.
"This will enable the joint venture to expeditiously develop quality, cost reflective yet profitable power projects that will benefit Africans - both power users and investors alike."
The joint venture will also develop and fund projects through corporate finance transactions and project finance in a bid to significantly reduce lead time to bring the power projects into service, the two firms said.
Image: Africa Finance Corporation's Cabeolica wind farm in Cape Verde. Photo: courtesy of Africa Finance Corporation.