Having identified chronic power shortages as one of the biggest obstacles to growth in countries across Africa, two Africa-focused funds have created a new energy joint venture.
The Energy venture is expected to be capable of generating 1,575 megawatts (MW) of electricity in at least 10 countries by merging assets totalling $3.3 billion. With a dearth of electricity or regular blackouts strangling industries, the continent is turning to outside investors and renewables to boost output.
The deal to develop and finance projects brings together Lagos-based Africa Finance Corporation (AFC) and Harith General Partners, which has offices in South Africa and Ivory Coast. Harith’s interests include Azura Edo independent power plant (IPP), a gas turbine power station in Nigeria, and Kelvin Power Station in South Africa. AFC’s include the Kpone IPP under construction in Ghana, and Cabeolica wind farm in Cape Verde.
A report published last month by PricewaterhouseCoopers (PwC) said an estimated 643 million people are living without electricity in Africa, with 80 percent based in rural areas.