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Egypt’s Infinity Group, a leading renewable energy firm, and Africa Finance Corporation will acquire independent power producer Lekela Power.
The value of the proposed acquisition, which could make Infinity Group one of the biggest renewable energy companies in the continent, was not disclosed.
The proposed acquisition, the value of which was not disclosed, includes Lekela Power’s wind power projects, which have a combined installed capacity of over 1 gigawatt (GW), mainly located in South Africa, Egypt and Senegal.
It also includes Lekela’s 1.8 GW pipeline of greenfield projects, the majority of which are anticipated to reach financial close soon, Infinity and AFC said in a statement on Monday.
British Investment company Actis and Mainstream Renewable Power, a company controlled by Norway's Aker Horizons, agreed to sell their stakes of 60 per cent and 40 per cent respectively in Lekela.
The acquisition comes as AFC is working to build a 3GW renewable energy platform. "We are focused on reducing Africa’s massive energy deficit through expanding the quantum of electricity using the various energy sources available throughout the continent," said AFC President and CEO Samaila Zubairu.
Working together with Infinity, the multilateral financial institution aims to more than double the capacity of their joint operating assets over the next four years, which stands at 1.4 GW after the Lekela acquisition, he added.
Africa’s installed renewable capacity is set to grow from 54 GW in 2020 to more than 530 GW by 2040, according to the International Renewable Energy Agency (IRENA), with solar PV soaring to 340 GW, and wind rising to 90 GW.
(Writing by Brinda Darasha; editing by Seban Scaria)
