Egypt’s Infinity Group, a leading renewable energy company, 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 largest renewable energy companies on the continent, was not disclosed.
The proposed acquisition, the value of which has not been disclosed, includes Lekela Power’s wind projects, which have a combined installed capacity of over 1 gigawatt (GW), primarily located in South Africa, Egypt and Senegal.
It also includes Lekela’s 1.8 GW pipeline of new projects, the majority of which are expected to close financially soon, Infinity and AFC said in a statement on Monday.
British investment firm Actis and Mainstream Renewable Power, a company controlled by Norway’s Aker Horizons, have agreed to sell their 60% and 40% stakes in Lekela respectively.
The acquisition comes as AFC works to build a 3 GW renewable energy platform. “We are focused on reducing Africa’s massive energy deficit by increasing the amount of electricity using the various energy sources available across the continent,” said AFC Chief Executive Officer Samaila. Zubairu.
Together with Infinity, the multilateral financial institution aims to more than double the capacity of its joint operating assets over the next four years to 1.4 GW after the acquisition of Lekela, it said. -he adds.
Africa’s installed renewable capacity is expected to grow from 54 GW in 2020 to over 530 GW by 2040, according to the International Renewable Energy Agency (IRENA), with solar PV reaching 340 GW and wind reaching 90 GW.
(Writing by Brinda Darasha; editing by Seban Scaria)
brinda.darasha@lseg.com
