Two Africa-based investors, Harith General Partners and Africa Finance Corporation (AFC), announced this week that they are to merge their power sector assets.
The new joint venture will combine renewable and fossil fuel-based generation assets in 10 African countries, with a total operational and under-construction capacity of 1575 MW.
The new company will merge AFC’s interests in Cenpower, owner of the 340 MW combined-cycle Kpone Independent Power Project under construction in Ghana, and Cabeolica, a wind farm spread across four islands that provides 20 per cent of Cape Verde’s energy demand, with those of the Pan Africa Infrastructure Development Fund (PAIDF) which is managed by Harith and includes the 450 MW Azura Edo open-cycle independent power project in Nigeria, the 310 MW Lake Turkana wind farm in Kenya, the 600 MW coal-fired Kelvin Power Station (pictured) in South Africa and the 90 MW Rabai oil-fired project in Kenya.
Tshepo Mahloele, Harith CEO and chair of UK-based Aldwych, a Harith subsidiary, said the merger aims 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 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,” he added.